The High Cost of Overpricing: 5 Risks to Avoid When Selling Your Home

Pricing your home correctly from the start is one of the most important decisions you'll make when selling—and also one of the easiest to get wrong. Many sellers are tempted to “test the market” with a high list price, assuming they can always drop it later. But in today’s real estate landscape, that strategy often backfires.

Let’s break down five costly risks of overpricing your home—and how it can hurt your bottom line.

1. Fewer Buyers, Less Interest

When your home is priced above what buyers are searching for, it simply doesn’t show up in their results—or worse, it gets skipped entirely. As Dave Ramsey puts it: “Overpricing your home will just scare buyers away, leading to more time on the market.” Even homes priced just 7–10% over market value can experience drastically fewer showings or attract only lowball offers.

2. More Days on Market = More Skepticism

A home that lingers on the market raises red flags. Buyers begin to wonder: What’s wrong with it? Is the seller getting desperate? According to the National Association of Realtors (NAR), homes that sit unsold for over 120 days often require a price cut of up to 8.4% just to regain interest.

3. You May Sell for Less in the End

Overpricing often leads to a domino effect of price reductions, which can send the wrong signal to buyers. Realtor.com warns: “If you overprice your home, it's going to sit on the market… and then you’re going to be chasing the price down…” The longer your home sits, the more pressure you may feel to reduce the price—sometimes multiple times. Buyers see these reductions and assume there must be a problem, making it harder to get a strong offer later on.

4. You Miss Out on Bidding Wars

When a home is priced just right—or even slightly below comparable listings—it can spark a bidding war. This competition often drives the final price up, sometimes beyond the original list. Bankrate explains: “Pricing it right… could lead to a bidding war, where buyers compete by increasing their offers.” Overpricing, on the other hand, eliminates this possibility and weakens your negotiation power.

5. Higher Carrying Costs and Added Stress

The longer your home sits unsold, the more you’ll spend on mortgage payments, property taxes, insurance, and utilities—with no return. As Basic Home Loan notes, prolonged time on the market doesn’t just hit your wallet—it takes an emotional toll, too. Sellers often experience stress, disappointment, and fatigue during extended selling periods.

Quick Recap: What Overpricing Really Costs

Price It Right the First Time

Overpricing can derail your sale—and your profits. Setting the right price from the start helps attract serious buyers, creates urgency, and gets you top dollar without the stress.

Reach out to The Vince Caropreso Team, your trusted real estate experts, for a personalized pricing strategy. We’ll help you nail that “just right” list price and guide you through your journey with confidence and clarity.