“The first offer is often the best offer—but only if buyers show up.”
Every homeowner believes their home is special. After all, it’s where birthdays were celebrated, children were raised, holidays were shared, and countless improvements were made over the years. Emotional attachment is natural. Unfortunately, the real estate market doesn’t price homes based on memories—it prices them based on value.
One of the most common and costly mistakes I continue to see across Long Island is homeowners insisting on pricing their homes well above current market value. While every seller hopes to maximize their return, an unrealistic asking price often has the opposite effect. Instead of generating excitement and multiple offers, the property sits on the market, becomes stale, and ultimately sells for less than it could have if it had been priced correctly from the beginning.
The old saying in real estate has never been more accurate: “The market determines the price—not the seller.”
Long Island Is Not One Market
One of the biggest misconceptions among homeowners is believing that if a home sold for a record price in a neighboring town, theirs should command the same premium.
Long Island is made up of hundreds of micro-markets. A home in Great Neck faces different buyer expectations than one in Garden City, Huntington, Massapequa, Smithtown, Port Washington, or Babylon. Even within the same town, values can differ dramatically depending on:
- School district
- Property taxes
- Lot size
- Condition
- Age of the home
- Renovations
- Location on a busy versus quiet street
- Water views or proximity to transportation
Today’s buyers have unprecedented access to information. They compare dozens of listings online before ever scheduling a showing. If your home is priced significantly above comparable properties, many buyers simply scroll past it without ever stepping through the front door.
Buyers Are Smarter Than Ever
Artificial intelligence, automated valuation models, and online real estate portals have fundamentally changed the buying process.
Today’s buyers know:
- What neighboring homes sold for
- How long each listing has been on the market
- Previous asking prices
- Price reductions
- Tax history
- Estimated monthly payments
When buyers believe a seller is unrealistic, many don’t even bother making an offer.
Instead, they wait.
And wait.
Eventually, when price reductions begin, buyers often assume something must be wrong with the property.
Ironically, the very buyers who might have competed aggressively during the first week may no longer have any interest after the home has lingered on the market for several months.
The Critical First Two Weeks
The first 10 to 14 days after a home hits the market are the most valuable marketing period.
This is when:
- New listing alerts go out.
- Serious buyers schedule appointments.
- Real estate agents notify their clients.
- Online traffic reaches its highest level.
- The greatest number of qualified buyers are actively watching.
If your home is priced correctly, this window often produces multiple showings, increased interest, and, in many cases, competing offers.
If it is overpriced, that momentum disappears almost immediately.
You never get a second chance to make a first impression.
Chasing the Market Down
Many sellers believe they can “test the market” by pricing high and lowering the price later if necessary.
This strategy rarely works.
Instead, the market begins chasing the seller downward.
Consider this example:
A home’s true market value is approximately $1,100,000.
The seller lists at $1,275,000.
For sixty days there are very few showings.
The price is reduced to $1,225,000.
Still little activity.
Another reduction follows.
By the time the home reaches $1,099,000, buyers have already watched the listing sit for months.
Instead of viewing it as desirable, they wonder:
“Why hasn’t it sold?”
Eventually an offer arrives—not at $1,100,000—but perhaps at $1,040,000.
The seller who hoped to gain an extra $175,000 ultimately accepts less than market value.
The Psychology of Competition
Human nature plays a powerful role in real estate.
Hey Nick GM
Unfortunately, ActiveRain doesn't allow a large enough thumbnail to be posted. More importantly, they should have available tools to be able to reduce our images and thumbnails to fit their frames. You have some power, so why not make that suggestion as I have done in the past. You are much more prevalent and relevant than I, lol
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