Most sellers come into the market with one number in mind. And it's often the one that costs them the most: their asking price.
A survey from Realtor.com shows about 8 in 10 sellers expect to sell at or above their asking price today. But here's where things get interesting.
In reality, only about 4 out of every 10 actually do.
That's a big gap, and it's where a lot of sellers get caught off guard. So why the disconnect — and how can you set yourself up to be one of the four?
What should you really expect to get?
That 40% may sound low at first. It isn't.
If you look back to the last typical year for the housing market — 2019 — what we're really seeing is a return to normal. If anything, slightly more homeowners are able to sell above list price today than in 2019.
It only feels low because the past few years were anything but typical. Between 2020 and mid-2022, buyer demand was sky-high and the number of homes for sale was at record lows. Almost everything sold over asking.
Now the market has shifted. There are more homes for sale. Buyers have more options. And that means they're more selective about how they spend their money.
The rules have changed — and pricing like it's still 2021 is where sellers run into trouble.
What happens when a home is priced too high
It's easy to think pricing high gives you room to negotiate. It usually does the opposite.
When your home is priced above what buyers expect, they don't negotiate. They move on. Buyers notice price first, and if your home doesn't line up with similar options in your area, it may not even get a showing. That's when things start to snowball:
- A high price gets less interest from buyers.
- Less interest means fewer offers.
- Fewer offers usually means more time on the market.
Homes listed at or under market value sell fast. Homes priced high linger — and that delay comes at a very real cost.
The price cut trap
When a home sits without offers, a lot of sellers reduce the price. According to Realtor.com, 16.7% of sellers are going that route today.
But a price cut doesn't guarantee a sale. Some buyers read a reduction as a sign something's wrong with the house — even when nothing is.
Data from the National Association of Realtors shows the longer a home sits, the bigger that price cut tends to be. So what starts as a strategy to leave room for negotiation ends up costing more.
Why pricing right from day one matters
Listing at — or even just shy of — market value may sound counterintuitive if you want top dollar. A lot of the time it really is the best strategy.
The goal isn't to list your house and see what price sticks. It's to price it in a way that creates demand from day one. NAR puts it best:
While some sellers are pricing their homes higher than ever, a more 'goldilocks' frame of mind is a better approach to avoid price cuts and lingering time on the market.
Too high and buyers disappear. Too low and they question the value. Right in the middle is where the magic happens — and that's where the right agent comes in.
Bottom line
A lot of homeowners think they can list high now and negotiate later. That's the mistake, and it's the reason only 4 out of 10 sellers get their asking price or more.
If you want to be in that group, it starts with getting the price right from day one. Let's connect so we can make sure you are.
