Most sellers come into the market with one number in mind. And it’s often the one that costs them the most. That’s their asking price.
A survey from Realtor.com shows about 8 in 10 (80%) of sellers expect to sell at or above their asking price today. But here’s where things get interesting.
In reality, only about 4 out of every 10 (roughly 40%) actually do.
That’s a big gap. And it’s where a lot of sellers get caught off guard. So, why the disconnect? And how can you set yourself up to be one of the 4 in 10 that get top dollar?
Let’s break it down.
What Should You Really Expect To Get for Your House?
That 40% may sound low at first, but it’s not.
If you look back to the last typical year for the housing market (2019), what we’re really seeing is a return to what’s normal (see chart below). If anything, slightly more homeowners are able to sell above list price today compared to 2019:
It only feels low because the past few years were anything but typical. Between 2020 and mid-2022, buyer demand was sky-high and the number of homes for sale was at record lows. Almost everything sold over asking.
Now, the market has shifted.
There are more homes for sale. Buyers have more options. And that means they’re more selective about how they spend their money.
In other words, the rules have changed – and pricing like it’s still 2021 is where sellers run into trouble. You have to meet the market where it is if you really want to cash in big.
What Happens When a Home Is Priced Too High
Here’s the reality. It’s easy to think pricing high gives you room to negotiate. But it usually does the opposite.
When your home is priced above what buyers expect, in this market, they don’t negotiate. They move on.
Because buyers notice price first. And if your home doesn’t line up with similar options in your area, it may not even get a showing. And that’s when things start to snowball:
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A high price gets less interest from buyers.
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Less interest means fewer offers.
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And fewer offers usually means more time on the market.
Take a look at this table from the Indiana Association of Realtors. While this data is from one state, the general trend is going to hold true across many markets in the country. It shows that homes listed at or under market value sell fast. But homes priced high? They linger. And that delay comes at a very real cost.
The Price Cut Trap (And How To Avoid It)
When a home sits that long without offers, a lot of sellers will do a price reduction. According to Realtor.com, 16.7% of sellers are going that route today.
But here’s the real problem. Even a price cut doesn’t guarantee a sale.
In fact, some buyers will see a reduction as a sign something’s wrong with the house – even when nothing is.
That’s why data from the National Association of Realtors (NAR) shows the longer a home sits, the bigger that price cut tends to be to attract buyers back:
So, what starts as a strategy to “leave room” for negotiate can end up costing you more in the long run.
Why Pricing Right from Day One Matters
Even though listing at or even just shy of market value may sound counter intuitive if you’re looking to get as much money for your house as possible, a lot of the time it really is the best strategy.
Because the goal isn’t just to list your house to see what price sticks. It’s to price it in a way that creates demand from day one.
NAR puts it best:
“While some sellers are pricing their homes higher than ever, a more ‘goldilocks’ frame of mind is a better approach to avoid price cuts and lingering time on the market.”
In other words, there’s a sweet spot. Too high, and buyers disappear. Too low, and they question the value.
But right in the middle? That’s where the magic happens.
And that’s where the right agent comes in.
They help you understand what buyers are actually paying right now, how your home compares, and how to price it so it stands out immediately. And in today’s market, that strategy is the difference between:
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Listing high, watching it sit, and selling for less later.
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Or, pricing it right, creating competition, and putting yourself in a position to win from the start.
FAQs About Pricing Your Home To Sell
What happens if you price your house too high?
Overpricing a home can lead to fewer showings, less buyer interest, longer time on the market, and eventual price reductions that may hurt buyer confidence.
Is pricing high to leave room for negotiation a good strategy?
In today’s market, buyers are more selective. Many overpriced homes are skipped entirely instead of receiving lower offers.
Why do homes sit on the market longer now?
With more inventory available, buyers have more options and compare prices carefully. Homes that don’t align with market value often stay unsold longer.
Do price reductions hurt a home sale?
Sometimes. Buyers may assume something is wrong with the property when they see multiple price cuts or extended time on the market.
What is the best pricing strategy when selling a house?
The best strategy is usually pricing at or near current market value from day one to attract strong interest and competitive offers.
How does a real estate agent help with pricing?
A local agent analyzes comparable sales, buyer demand, local inventory, and market trends to help determine a competitive listing price.
Bottom Line
A lot of homeowners think they can list high now and negotiate later, but that’s a mistake that costs them. And it’s the reason only 4 out of every 10 sellers are getting their asking price or more.
If you want to be in that group, it starts with getting the price right from day one.
Connect with a local agent to make sure you are.
Wondering what your home could realistically sell for in today’s market? A local real estate expert can help you price strategically, attract serious buyers, and avoid costly pricing mistakes from the start.
Find out what your home is worth >
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Courtesy of Keeping Current Matters
Why Overpricing Your Home Backfires, The Risks of Pricing Too High, How Buyers React to Overpriced Homes, Why Correct Pricing Matters in Today’s Market, The Best Strategy for Selling Your Home Faster, How To Avoid Price Reductions
