Admin

The Gap Between Seller Expectations and Reality is Growing

By
Real Estate Agent with Keller Williams Capital Properties DC AB15253

Even as recently as last year, homes were selling quickly and getting multiple offers well over their asking price. It felt like sellers could name any price and still have buyers lined up at the door. But today’s housing market is different. Buyers are getting more selective now that inventory has grown. Homes are sitting a little longer. And more sellers are having to cut their prices.

So, how do you still come out on top? It all starts with one thing, pricing your house right from the start. Today, that matters more than ever – and it can make or break your sale.

The Hidden Pitfalls of Overpricing Your Home: Why a Realistic Listing Price Matters

Selling a home is an exciting journey, but it’s also one that requires careful strategy—especially when it comes to pricing. Every seller wants to get the best possible price, but setting the bar too high can have unintended consequences. Let’s explore why overpricing your home might actually cost you in the long run.

The Buyer Can Just Make an Offer

Sure, the buyer can just make an offer - even if your home is overpriced.  The problem is that today’s buyers are savvy. They have access to market data, comparable sales, and automated valuation tools at their fingertips. If your home is priced significantly higher than similar properties in the area, it may not even make it onto their shortlist. Instead of generating excitement, an overpriced home might cause buyers to scroll past, assuming it’s out of reach—or simply not worth their time - or worst of all, that you are an unreasonable or delusional seller that they should avoid at all costs.  If the buyer doesn't even put your home on their list, how are they going to know that it is a home worth offering on? If they don't even see it, they certainly won't offer on it! 

The Danger of Sitting on the Market

Homes that linger on the market for too long often raise red flags. Buyers may wonder if there’s something wrong with the property or assume the seller is difficult to negotiate with. The longer a home remains unsold, the more likely it is that buyers will start making lowball offers, expecting desperation to kick in.  

Appraisal and Financing Issues

Even if you find a buyer willing to pay a premium price, their lender will require an appraisal. If the appraisal comes in lower than the purchase price, the buyer may need to cover the difference out-of-pocket, renegotiate, or walk away altogether. Overpricing can create unnecessary obstacles that derail the sale late in the process.

Price Reductions Can Send the Wrong Message

If a home is overpriced and doesn’t attract offers, sellers often resort to price reductions. While lowering the price seems logical, repeated cuts can make the property appear undesirable. Buyers may start wondering, “Why hasn’t this home sold yet?” and assume there’s a hidden issue.

Competitive Pricing Leads to Stronger Offers

On the flip side, a well-priced home generates interest and competition. When buyers feel a home is fairly valued, they’re more likely to submit strong offers, sometimes even above asking price. A realistic price encourages engagement, showings, and ultimately, a faster sale.

How to Price Your Home Right

Working with a knowledgeable real estate agent who understands market trends is key. They can provide a comparative market analysis (CMA) to determine the optimal listing price. It’s also wise to consider factors like location, condition, and buyer demand. A strategic price point will help your home sell efficiently while maximizing your return.

Many Sellers are Overpricing 

81% of home sellers believe they’ll get their asking price or more. But the actual sales data shows there’s a growing gap between what sellers expect and what buyers are actually willing to pay. In fact, 44% of recently sold homes went for less than the asking price. And 1 in 3 sellers had to cut their price at least once before the home sold. It’s a sign that expectations may be a little out of step with today’s reality.

Check out the graph below. It uses data from Redfin to show that asking prices (blue line) are higher than actual sales prices (green line) by a wider and wider margin:

a graph of sales and prices

This tells you something obvious but important: Not all buyers are willing to pay what many sellers are asking.  That doesn't mean that you can't sell for a great price- but it does mean that you need to start with a price that reflects what people are willing to pay in today's market.  Overpricing your home might seem like a good way to test the market, but it often backfires. Buyers are informed, and overpriced listings tend to lose momentum quickly. A competitive price can lead to quicker sales, better offers, and a smoother transaction. So before listing, take the time to price your home thoughtfully—it can make all the difference.

Selling your home is a big step, and the right pricing strategy can set you up for success.  It is more important now than in the last few years to get the initial list price right from the start.  If you are thinking of selling your home, let's talk!  Here is a link to my seller's guide, which you might find helpful.    I can be reached at 240-401-5577 or email me at lise@lisehowe.com

Comments(18)

Show All Comments Sort:
Roy Kelley
Retired - Gaithersburg, MD

Good Wednesday morning, Lise.

This is good advice to share with home sellers.

Keep dry and have a great day.

May 28, 2025 06:19 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Lise - I have previously said pie-in-the-sky thinking can lead to "just desserts".  Unrealistic expectations are not that appetizing.  In real estate and wherever reality is served.  

May 28, 2025 06:30 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Lise, with out homes sitting on the market 30+ days, buyers are feeling they have the upper hand.

May 28, 2025 09:05 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Lise and excellent information to share with us today in the Rain.  We can all learn from each other here.  Can I reblog this one next week?

May 28, 2025 09:14 AM
GilbertRealtor BillSalvatore
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

great information. Thanks for sharing it.

Have a super fantastic week!

Bill Salvatore, Realtor- Arizona Elite Properties

May 28, 2025 10:34 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Lise,

Excellent post with great data to show there’s a growing gap between what sellers expect and what buyers are actually willing to pay. Pricing it right is so important!!!

May 28, 2025 10:58 AM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

Will Hamm - You are always welcome to reshare my posts - I am honored! 

May 28, 2025 11:07 AM
Lew Corcoran
Better Living Real Estate, LLC - East Bridgewater, MA
Expert guidance. Exceptional results.

I really appreciate your clear and practical insights, Lise Howe - especially how you highlight the importance of realistic pricing in today’s market. Thanks for sharing these valuable tips. It’s a good reminder that setting the right price from the start can save a lot of headaches and lead to a smoother sale. 💡🏡

May 28, 2025 02:52 PM
Kathy Streib
Cypress, TX
Retired Home Stager/Redesign

Hi Lise- your post shows why it is critical for sellers and buyers to work with a qualified local expert, like yourself. You know the current market...not what it was. 

May 28, 2025 07:34 PM
Roy Kelley
Retired - Gaithersburg, MD

Good Thursday morning, Lise. I hope all is going well for you this week.

May 29, 2025 05:16 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

There are quite a few opinions of value when it comes to market value, and all of them need to be considered when listing a home for sale!

May 29, 2025 05:36 AM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

Lise, we're seeing a lot of unrealistic pricing in the market lately!

May 29, 2025 05:51 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Associate Real Estate Broker

Lise, with the shift in the market, even though it is still to a seller's advantage, having the professional on your side to help with the sale or the buy becomes more crucial.

May 31, 2025 08:25 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

That gap is definitely growing and sadly, some sellers are not in touch with reality! I had buyers just walk away when a seller wouldn't come down a small percentage. The property sat for nearly 4 months! That timeline is lengthening too.

Great post, Lise!

May 31, 2025 08:29 AM
Ann Hayden 636-399-7544
Berkshire Hathaway HomeServices Select Properties-St. Louis Missouri 314-775-2050 - Des Peres, MO
SelectAnn.com

Lise Howe ,

This is a great post!  Pricing the property correctly from the start encourages more activity and usually more offers!

Happy Monday,

Ann in smokey Missouri

Jun 02, 2025 06:20 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good afternoon Lise,

I'm so glad that Will Hamm re-posted your post. Its really worth reading again and again! The gap is definitely growing and many sellers are not facing the reality of the market!

Jun 02, 2025 11:32 AM
Patricia Feager
Flower Mound, TX
Semi Retired Real Estate Agent

Lise Howe - the gap keeps getting wider. I hope things improve for you. 

Jun 21, 2025 02:11 PM
Patricia Feager
Flower Mound, TX
Semi Retired Real Estate Agent

In my area, Lise Howe there is way more inventory than buyers and it doesn't seem to be moving in a positive direction. 

Jun 21, 2025 02:41 PM