Why Pricing Your Home RIGHT the First Time Is More Important Than Ever

A few years back, homes were flying off the shelves faster than we could schedule showings. Sellers were seeing multiple offers over asking price within days — sometimes hours. It felt like you could name your price and still have buyers lining up at the door.

But the market has shifted.

Buyers today are more selective. With more inventory to choose from, homes are sitting longer. We're also seeing more sellers having to reduce their asking price just to stay competitive.

So what’s the key to staying ahead in this new landscape? It comes down to one critical factor: pricing your home right from day one. In today’s market, that decision can make all the difference in how quickly you sell — and for how much.

There's a Growing Gap Between Buyers and Sellers

Realtor.com recently found that 81% of home sellers believe they’ll get their asking price or more. But many times the data tells a different story.

According to the National Association of Realtors, 44% of homes sold recently went for less than the asking price. And about a third of sellers had to reduce their price at least once before getting an offer.

What does that mean for you? Expectations and reality are drifting apart. And pricing your home based on where the market was — not where it is — can cost you time and money.

Here’s a look at some data from Redfin showing asking prices vs. final sale prices. You’ll notice the gap between the two is growing wider:

This tells us something very important: buyers aren’t jumping at just any listing. They’re looking for value — and they’re educated about what that looks like in today’s market.

The Risk of Overpricing

I get it — it’s tempting to start high, thinking you’ll have room to negotiate. But here’s the truth: pricing your home to high can actually backfire.

When a home sits on the market too long, buyers start to wonder what’s wrong with it. That leads to fewer showings, less enthusiasm, and eventually, a price change. And that price change often puts you right where you could’ve been in the first place — only now with more time on the market and less leverage.

Realtor.com puts it well:

“By setting the right price early on, you can increase the odds buyers will be interested in the home. In turn, this decreases the chances the home will sit on the market for a lengthier timeline, also reducing the odds you’ll need to lower the asking price.”

The longer a house sits, the harder it becomes to sell. That’s why I always stress to my clients — pricing right from the start gives you the best shot at a strong, timely offer.

You Can Still Come Out Ahead

Here’s the good news: you can still sell for a great price — especially if you’ve owned your home for a few years. Home values have gone up over 57% in the past five years. Even if you price a bit below your original expectations, odds are you’re still looking at a healthy profit.

The key is working with a local agent, like me, who knows your neighborhood and understands today’s buyers. I’ll look at recent sales, buyer behavior, and current inventory to help you find that pricing sweet spot that attracts attention — and offers.

As Mike Simonsen from Altos Research puts it:

“. . . the best properties, well priced, are selling quickly in most of the country.”

Bottom Line

The market isn’t what it was a few years ago — but that doesn’t mean your opportunity to sell is gone. You just need the right strategy, starting with the right price.

If you're thinking about selling, let’s talk. I’ll give you a clear, honest look at what’s happening in your neighborhood — and what it will take to position your home to sell quickly and for top dollar.