There’s one big mistake you need to avoid when you sell your house this year: setting your price too high. It might seem like overpricing gives you room to negotiate or could really boost your profit, but the reality is, it usually backfires.

In fact, Realtor.com says almost 20% of sellers — that’s one in five — have to reduce their price to get their house sold. And you don’t want to be one of them. Here’s why starting too high can lead to trouble, and how to avoid it.

Overpricing Pushes Buyers Away

With mortgage rates and home prices where they are right now, buyers are already stretching their budgets to make a move. So, when they see a house that’s priced too high, they’re not thinking, “I can negotiate.” They’re more likely to think, “next” and skip over your house entirely. An article from the National Association of Realtors (NAR) explains:

“Some sellers are pricing their homes higher than ever just because they can, but this may drive away serious buyers . . .”

And if they skip over your listing, you’ll miss out on the chance to get them through the door. That’s the last thing you want because fewer showings mean fewer chances to receive an offer.

The Longer Your House Sits, the More Skeptical Buyers Will Get

Here’s the other issue. An overpriced house tends to sit on the market longer. And the longer a house lingers, the more buyers start to wonder what’s wrong with it. Is there a problem with the house itself? Are you difficult to work with? Even if the only issue is the price, that extra time creates doubt. As U.S. News says:

“. . . setting an unrealistically high price with the idea that you can come down later doesn’t work in real estate . . . A home that’s overpriced in the beginning tends to stay on the market longer, even after the price is cut, because buyers think there must be something wrong with it.”

At that point, you’ll have no choice but to lower your price to drum up interest. But that price reduction comes with its own downside: buyers may see it as another red flag, that there’s an issue with the house.

Overpricing Can Cost You Multiple Offers and Price Escalations

One of the biggest mistakes sellers make when setting their price too high is missing out on the opportunity to create a competitive market for their home. A well-priced home can attract multiple offers, driving demand and even leading to price escalations — but overpricing takes you out of the running for this advantage.

Here’s how overpricing affects your chances of creating competition:

1. Less Interest Means Less Competition
   When your home is priced too high, fewer buyers will even consider it. This lack of interest significantly reduces the chances of receiving multiple offers, which is where sellers often see the biggest benefits, like higher final sale prices and favorable terms.

2. No Room for Price Escalations
   Price escalation clauses come into play when buyers compete for a home, automatically raising their offer above others to secure the property. Overpricing prevents this dynamic from happening because buyers won’t see your home as competitive or worth fighting for.

3. You Lose Negotiation Power
   Multiple offers give you options and leverage to choose the best terms — whether it’s price, contingencies, or timing. Without the competition, you’re left with limited options and could end up accepting less favorable terms.

The Key To Finding the Right Price for Your House

So, what’s the secret to avoiding all these headaches? It’s simple. Work with a local real estate agent who knows the market inside and out, and who’s going to be honest with you about how you should price your house.

You don’t want to partner with someone who just agrees to whatever number you throw out there. That’s not an expert who’s going to get you the best results.

You want an agent who recommends a price based on their expertise. The right agent will use real-time data from your local market to help you land on a price that makes sense — one that grabs attention, attracts buyers, and still helps you walk away with a great return. Someone who has been there and done that – and done it well. That’s the agent you want to work with.

Bottom Line

Don’t let pricing mistakes cost you time, money, or the chance to create excitement around your home. With the right strategy, you can attract multiple offers, create competition, and even see price escalations that maximize your return. We know how to position your home perfectly in today’s market to get the best results. Reach out to us today, and let’s work together to make your selling experience seamless and profitable!

Individual Market Analysis for Eastside Cities:

Sammamish:

• • • • Active Listings: Significant year-over-year increase in active listings.
      • New Listings: Higher number of new listings added in June 2024 compared to last year.
      • Pending Sales: Stable pending sales indicating steady buyer interest.

Redmond:

• • • • • Active Listings: Increase in the number of properties listed for sale.
        • New Listings: A notable rise in new listings, reflecting active seller participation.
        • Pending Sales: Slight decrease in pending sales, possibly due to fluctuating mortgage rates.

Bellevue:

• Active Listings: Substantial increase in active listings year-over-year.
• New Listings: A significant influx of new listings in June 2024.
• Pending Sales: Stable pending sales, showing consistent buyer interest.

Mercer Island:

• Active Listings: Increase in the number of active listings.
• New Listings: Higher number of new listings indicating seller confidence.
• Pending Sales: Slightly lower pending sales, influenced by market conditions.

Kirkland:

• Active Listings: Growth in the number of active listings.
• New Listings: Increase in new listings compared to last year.
• Pending Sales: Stable pending sales, with consistent market activity.

Summary and Recommendations:

For Buyers:

• • • • • Act Quickly: Given the low inventory and high competition, it's crucial to move quickly when a desirable property becomes available.
        • Prepare Financially: Ensure your financing is pre-approved and be prepared to offer above the asking price in highly sought-after areas like Bellevue and Redmond.

Our Listing Process

With Shane & Anne, our mission is to prioritize our clients in every aspect of the real estate journey. We are committed to providing exceptional service and expertise in the luxury real estate market. Guided by our core values, we strive to build lasting relationships based on trust and mutual respect.

Our Core Values:

• Loyalty: We are unwavering in our commitment to our clients, always putting their needs and interests first.
• Honesty: We operate with the highest level of integrity, providing truthful and transparent communication at every step.
• Confidentiality: We respect our clients' privacy and handle all transactions with the utmost discretion.

We are committed to staying ahead of market trends and continuously enhancing our skills and knowledge to deliver unparalleled results. Our goal is to make the real estate experience as smooth and rewarding as possible, ultimately helping our clients achieve their real estate dreams.

Contact us today at shaneandanne.com to schedule a consultation and take the next step towards your real estate dreams. Let's make your next move your best move!