Avoid the Pitfall of Overpricing: How to Sell Your Home for the Best Price

Pricing Your Home Correctly: Why It Matters More Than You Think

Pricing your home correctly is arguably the most important decision you’ll make when selling. As a real estate agent, I’ve seen firsthand the pitfalls of overpricing—and the costly consequences that come with it. While it’s tempting to aim high and test the waters with an ambitious listing price, this strategy can often backfire, costing you more in the long run.

Overpricing can hurt your home sale in ways you might not even realize, from losing potential buyers to extending your days on market (DOM) and ultimately forcing you to reduce the price even further.

A Real-Life Example

Let me share a story about a recent listing I took on. This home had been on the market for six months with a previous agent but hadn’t sold. When I first reviewed the listing, I was surprised by how high the price was compared to similar homes in the area.

When the home originally hit the market, the local real estate scene was booming—homes were selling quickly, often with multiple offers, and many went under contract within days. I know this firsthand because I was actively buying at the time and lost out on five different properties due to all-cash offers.

This home was only a few years old, in like-new condition, and located in a prime area. Given the hot market, it should have sold quickly. Unfortunately, after six months and a $65,000 price reduction, it still wasn’t attracting buyers.

The seller eventually took the home off the market and attempted to rent it out, only to find that competing rental prices were lower than expected. Realizing that renting wasn’t a viable option, a month later they decided to sell again.

At this point, I was brought in by her lender to relist the home. However, the market had shifted—interest rates had climbed, economic uncertainty had set in, and the seasonal slowdown had begun. The prime selling window had passed, and buyers had become more selective. We had an uphill battle ahead.

The Challenge: Days on Market (DOM) and Buyer Perception

One of the biggest obstacles we faced was the stigma that comes with a high number of Days on Market (DOM). When a home lingers on the market, buyers begin to wonder why it hasn’t sold. Is there something wrong with it? Is the seller desperate? Homes with high DOM often get labeled as overpriced, even after multiple price reductions.

This was exactly the case with this home. Despite the previous $65,000 price drop, it had already been sitting for months, and buyers were hesitant to even schedule showings. Perception became reality—people simply weren’t interested in a home that had been on the market for so long.

To make matters worse, a similar home in the same neighborhood—despite having fewer upgrades—sold for $25,000 more simply because it had fewer DOM. The perception of a “fresh” listing made all the difference, even though our property was priced lower. That’s the power of first impressions and buyer psychology.

The Turning Point: Data-Driven Strategy

To break through this barrier, I knew we had to take decisive action. After a thorough market analysis, we made the difficult but necessary decision to reduce the price again—not just to match current market value but to combat the negative perception created by the high DOM.

Price adjustments were only part of the strategy. To reignite interest, during the 3 month period it took to get the home sold we:
✔️ Held over 20 open houses to get fresh eyes on the home
✔️ Updated the listing with new photos and refreshed marketing copy
✔️ Re-engaged with local buyers and agents
✔️ Repeatedly pitched the home at local broker pitch sessions

Throughout this process, I provided my client with detailed, data-driven insights. Weekly reports tracked market trends, buyer activity, and competing listings, helping us adjust our approach in real time. This allowed us to stay ahead of the market and make informed decisions.

The Key Lesson: Pricing Strategy Matters

This experience reinforced an essential truth: Pricing strategy is everything. A well-priced home attracts buyers, creates urgency, and leads to strong offers. Overpricing, on the other hand, often results in extended market time, reduced buyer interest, and, ultimately, lower offers.  And the first two weeks on the market are critical, as this is when a listing gets the most attention and attracts serious buyers, making it essential to price competitively from the start.

Had this home been priced correctly from the start, the seller could have leveraged the hot market and sold at a higher price before the listing became “stale.”

This home was originally listed at $980,000 with another agent during a strong seller’s market when similar homes were selling within a week. After six months without success, I took over the listing. By then, the market had shifted, requiring strategic price adjustments to align with current conditions. It took 21 open houses, ongoing market evaluations, and three more months to get it sold for $825,000. Had it been priced correctly from the start, the seller could have capitalized on the initial strong market and likely secured a better outcome.

Thinking About Selling?

If you’re considering selling your home, pricing it right from the start is crucial. The right price attracts buyers, creates urgency, and maximizes your sale price. Overpricing, however, can lead to missed opportunities, extended market time, and, ultimately, a lower sale price.

As a strategist and numbers geek at heart, I guide my clients using data-driven insights—aligned with my Nest & Invest With Debby philosophy—to help them sell their homes for the best possible price. My goal is to create a strategy that not only gets your home sold but also ensures your financial security and peace of mind throughout the process.

Want to learn more about pricing strategy?  Let’s connect and craft a strategy that positions your home for success.  It’s time to sell your home the right way—without leaving money on the table.

📞 Call me at 619-820-9999 to get started. Or schedule a time to chat on my calendar.

Debby Eubank, Realtor, SRES
Nest & Invest Host / Real Estate Maven
Jason Mitchell Group
DRE# 01332306
📲 619-820-9999