3 Risks Home Sellers Face When Setting High Listing Prices

Are there any consequences to overpricing your home? When you list your home at a higher price, the market will notice, and it can cost you more than just time..

One of the first things I check each morning is my “hot sheet.” This is the first page of the MLS, which usually shows price reductions, new listings, properties going under contract, and expired listings. Lately, I’m still seeing quite a few price drops, which is why I want to share three real risks sellers face when pricing their home too high.

1. Price drops raise red flags. The most common outcome of overpricing is a price reduction later on. This isn’t just about adjusting a number; it can create a psychological barrier for potential buyers. They might start to wonder, “What’s wrong with this home?” Instead of attracting interest, you risk turning buyers away.

2. Your listing could expire. Another risk you face is ending up with an expired listing. This happens when your home stays on the market too long without selling. This usually means taking it off the market altogether.

3. You may end up renting it out. For sellers relocating for work or other reasons, you might be forced to take your home off the market and rent it out. While that might cover some costs, it’s rarely the plan you had in mind when listing.

Pricing your home is a strategic move. Consulting with a professional can help you see how many homes in your price range have been reduced, how many active competitors you have, and where your home should land so buyers actually see it.

Here in New York, only about 9% of homes are showing price reductions right now. Compare that to states like Arizona, where nearly 30% of listings are cutting prices, and you’ll see how local market conditions matter.

Overpricing can set you back, while a realistic price sets you up for success. Take the time to plan with a local professional, review the data, and list at a price that puts your home in the right spot from day one.

If you’re thinking about selling, let’s connect and talk about your options. Please contact me at (607) 795-2904 or vickischamel@kw.com and let’s get your pricing right from the start. This can save you time, stress, and money.