Why Some Sellers Overprice on Purpose — And Why It Usually Fails
In real estate, you might see homes priced well above market value and wonder: Is this a strategy or just wishful thinking? Some sellers deliberately overprice, hoping to attract attention or leave room for negotiation. While the intention may seem smart, it often backfires.
1. Why Sellers Overprice
a. Emotional attachment
Sellers often value their home higher than the market does, factoring in memories, upgrades, or sentiment.
b. Leaving room to negotiate
By listing high, some hope buyers will offer slightly lower, still meeting the seller’s target price.
c. Market testing
A high price can be a way to gauge buyer interest or see what the market will bear.
d. Agent strategy (sometimes)
Some agents use a high listing to get attention, assuming price reductions later will create urgency.
2. Why Overpricing Usually Fails
a. Homes sit longer
High prices can deter serious buyers, increasing Days on Market (DOM).
b. Buyers lose trust
A property that’s overpriced can make buyers skeptical about the condition, neighborhood, or seller motivation.
c. Price reductions signal weakness
Repeated drops can suggest desperation, making buyers offer less than fair market value.
d. Missed market window
In competitive markets, overpricing can cause sellers to miss peak demand.
3. How Buyers See Overpriced Homes
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Often ignored on first search
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Viewed skeptically during tours
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Subject to lowball offers or delays in decision-making
Even if a buyer later sees the home, the initial hesitation may reduce competition and final sale price.
4. When a Slight Premium Makes Sense
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Exceptional upgrades or unique features justify a modest premium
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Highly desirable neighborhoods may tolerate slightly higher prices
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Properly marketed “premium” listings can still attract attention
The key is moderation and realistic expectations.
5. Final Thoughts
Overpricing may seem like a clever tactic, but it usually slows the sale, discourages buyers, and can reduce final returns. Realistic pricing aligned with market conditions often leads to faster sales and better results.
Sellers should focus on accurate valuation, strong marketing, and creating urgency, rather than relying on inflated list prices.
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Tina Jingru Sui 隋静儒
Associate Broker | Team Leader of TJS Team, Keller Williams
Serving Metro Atlanta — Johns Creek, Alpharetta, Duluth, Suwanee, Buford, and beyond
404-375-2120
WeChat: tinasuirealty
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