It’s tempting to test the market with an ambitious price tag. After all, what’s the harm in starting high and seeing what happens?

The harm is significant, and it’s a mistake that can cost you not just time, but ultimately, money. Overpricing your home doesn't just hurt your chances of selling; it actively increases the chances of your competition succeeding.

The Role of the "Price Anchor" ⚓

When a buyer is searching online or touring homes, they are constantly making comparisons. Your overpriced listing doesn't look like a potential negotiation point; it becomes what we call a "price anchor."

Imagine your home is listed at $750,000, and a nearly identical home down the street is listed correctly at $700,000. Buyers will look at your listing, establish $750,000 as the high-water mark, and then see the competitor's home as an incredible, immediate bargain.

You are essentially justifying for buyers to move quickly and submit an offer on the other house. You've inadvertently driven traffic—and urgency—to the competition.

The Three Hidden Costs of Overpricing

1. Missing the "Hot Zone" Window 🔥

The first few weeks your home is on the market are the most crucial. This is when the largest pool of motivated buyers and all active agents are paying attention. Overpricing means:

• You lose visibility: Many serious buyers filter out your home because the price is outside their comfortable range.

• You miss momentum: Instead of generating multiple showings and potentially a bidding war, your listing is largely ignored.

2. The Stigmatization of Stagnation 🕰️

A listing that sits on the market for 30, 60, or 90 days begins to acquire a stigma. When you eventually drop the price (the dreaded price reduction), buyers don't see a new opportunity; they often think, "What’s wrong with the house that it couldn’t sell at the original price?"

You only get one chance to launch your listing as "new."

3. Giving Away Leverage

When you have to reduce your price weeks or months later, you lose all leverage in negotiation. Buyers see the price history and know you are under pressure, leading them to submit lowball offers that you might be forced to accept just to move the property.

The Takeaway: Let's Be "IN" the Market, Not Just "ON" It

Selling your home successfully means embracing a data-driven strategy that puts you in contention from Day 1.

• Being "ON" the market means listing high, hoping for the best, and waiting for someone to make a mistake.

• Being "IN" the market means pricing accurately based on recent comparable sales (comps) to create massive buyer excitement and encourage competitive offers.

Your goal is not to have the highest list price, but to achieve the highest sold price.

Ready to discuss a pricing strategy that targets motivated buyers and gets you sold quickly?

Don't let your pricing strategy be the reason your neighbour sells before you do. Contact me today for a confidential, data-driven home valuation and strategy session.