Overpricing: What Sellers Risk (and How to Avoid It)

Overpricing: What Sellers Risk (and How to Avoid It)

‍

When selling your house, the price you choose isn’t just a number, it's a strategy. And in today’s market, that strategy needs to be sharp.

With more homes hitting the market, buyers are calling the shots — and they’re swiping left on overpriced listings.

‍

Pricing right from the start is your best move.

‍

What Happens When You Price to High?

Overpricing your home can leave you stuck — and not with the options you were hoping for. When a listing sits on the market, sellers often find themselves facing one of these three paths:

• Drop the price: Yes, a price cut might attract more attention. But it can also raise eyebrows. Buyers may wonder what’s wrong with the house and come in with lower offers.
• Take it off the market: Some sellers pull the plug altogether, putting their next chapter — whether that’s more space, downsizing, or relocating — on hold.
• Rent it out: Others become landlords by default. But managing tenants and leases is rarely as easy as it sounds — and it may not align with your long-term goals.

None of these outcomes are ideal. And most of them weren’t part of your original plan.

‍

Real Estate Is Always Local

While price cuts are up nationally, not every market is affected equally. Here in Minnesota, we’re seeing an increase — but it’s nowhere near the levels in parts of the West and South.

And even within Minnesota, it depends on the zip code. In the Minneapolis market, some areas are still moving quickly without price reductions.

That’s why you need more than just general data. You need strategy, timing, and a deep understanding of the market at the neighborhood level.

‍

As Zillow puts it:

“Well-priced homes are more likely to sell quickly, but pricing your home to sell quickly and for maximum dollar requires strategy and knowledge of your local market. You need to have a clear-eyed view of your home in relation to the competition, and knowledge about whether you’re in a buyers or sellers market. It also helps to know what buyers in your area can afford.” 

‍

‍

As always, from all of us here at Matt Engen Group, thanks for reading!