Why Overpricing Your Home Can Backfire

By Linda Welsh

Specialize in representing savvy Buyers and Sellers for residential, second home, vacation properties, lake and hill country properties, new and existing homes, land and lots. Relocation services include area, community and neighborhood expertise and helping the entire family to find the perfect home to meet their needs and wish list.

Sellers naturally attach memories, improvements, and personal value to their home, often leading them to price it higher than the market will bear. They assume buyers will recognize that value and “just make an offer.”

Let’s explore why this emotional attachment backfires, how buyers respond, and what sellers can do to price smarter.

How buyers see your home. Buyers focus on what’s available right now and compare size, location, condition, and upgrades. Homes priced five to ten percent above market are often skipped. Agents filter out these listings, traffic slows, and offers may come only from investors making lowball bids, sometimes as low as 65% to 70% of the asking price, often with repair requests or renegotiations during inspection.

Overpricing kills momentum. A listing that sits too long begins to feel stale. The first price buyers see becomes their anchor. For example, a home worth $550K to $600K listed at $700K will be ignored by most buyers. Even competing agents may show it only to make other homes look better.

Why sellers resist lowering the price. Emotion keeps sellers stuck. They fear admitting they misjudged the market or worry that reducing the price will trigger even lower offers. Some hope the market will rise. But most buyers do not make offers based on a percentage of the asking price; they act on the current market value.

Investor offers are not personal. Investor offers reflect strategy, not market interest from typical buyers. Sellers should not panic. Understanding the market, reviewing comparative listings, and staying informed about active and upcoming properties in the neighborhood are critical steps.

Price with the market to sell. Accurate pricing protects momentum, attracts serious buyers, and avoids the frustration of chasing the market. Sellers who detach from emotional attachment and price realistically give their home the best chance to reach the closing table.

Overpricing may feel safe, but it often backfires. Pricing with the market rather than against it saves time and stress and keeps your sale on track.

If you’re unsure how to price your home, feel free to reach out for a personalized market review and guidance for your neighborhood and property. You can just call me at (512) 657-4033 or visitLindaWelshRealtyGroup.com. I’d be happy to walk you through the process and help your home find the right buyers.