The Biggest Mistake Sellers Make: Overpricing Their Home

In today's Whittier, CA housing market, many sellers are making a critical mistake: overpricing their homes. This common error can result in a property sitting on the market for an extended period without receiving any offers. When that happens, homeowners often find themselves lowering the asking price to re-ignite buyer interest.

According to data from Realtor.com, the number of sellers making price reductions is on the rise (see graph below):

Here’s why proper pricing is so critical:

Ignoring Current Market Conditions Understanding today’s market conditions is crucial for accurate pricing. The real estate market has changed significantly since the pandemic, so pricing your home based on outdated trends can be a costly error. A knowledgeable real estate agent in Whittier stays updated on local market trends and how they impact your home’s value, ensuring your pricing strategy is aligned with today’s reality.

Pricing Based on Desired Profit Instead of Market Value Another common mistake is setting your asking price based on what you hope to make from the sale, rather than the current market value. While you may notice similar homes in your neighborhood selling for top dollar, factors like property size, condition, and features can make a big difference. For example, that other home might have a prime location or premium upgrades that justify a higher price. Bankrate sums it up best:

“How do you find that sweet spot of pricing for profit but not overpricing? The expertise of your agent can be truly valuable here. A knowledgeable agent will understand fair market value in your area, how much your house is worth, and how much you might reasonably expect to get in the current market.”

A Whittier real estate agent will perform a comprehensive comparative market analysis (CMA) to ensure your home is priced competitively based on similar properties in the area.

Overpricing to Leave Room for Negotiation Some sellers purposely overprice their home to leave room for negotiations, but this strategy can backfire. A high asking price can deter potential buyers from even considering your home. Instead of sparking interest, you may end up driving buyers away. As U.S. News Real Estate explains:

“You want to sell your house for top dollar, but be realistic about the value of the property and how buyers will see it. If you've overpriced your home, chances are you'll eventually need to lower the number, but the peak period of activity that a new listing experiences is already gone.”

An experienced Whittier real estate agent can help you set a competitive price that attracts buyers and encourages stronger offers, rather than chasing them away.

Bottom Line Overpricing your Whittier home can have serious consequences. Working with a skilled real estate agent who brings objective insights, in-depth market knowledge, and a strategic pricing approach can help you avoid costly mistakes. Let's connect to discuss the best pricing strategy for your home and ensure you don’t miss out on potential buyers in today’s Whittier market. 

*The information contained, and the opinions expressed, in this article are not intended as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Always conduct your own research and seek professional advice before making any investment decision. Keeping Current Matters, Inc. is not liable for any loss or damage caused by your reliance on this information.