Why It's So Important to Price Your Home Right the First Time in Today's Market.

Why It's So Important to Price Your Home Right the First Time in Today's Market

Selling a home is a big deal, and one of the most important decisions you'll make is setting the right price. In today's real estate market, buyers are more informed than ever, and pricing your home correctly from the start can make all the difference. Homes that are priced too high often sit on the market for too long, and once that happens, even if you lower the price, it can be tough to regain interest. On the flip side, pricing your home right from the get-go can create buzz, attract multiple offers, and even spark a bidding war. Here’s why getting the price right the first time matters more than ever.

The Problem with Overpricing: Days on Market (DOM) Are Everything

In real estate, one of the most critical factors is **Days on Market (DOM)**—that’s how long a home sits for sale before someone buys it. The longer a home stays on the market, the more buyers start to wonder, “What’s wrong with this house?” It’s not just about the price; it becomes a psychological hurdle for buyers. They think, “Why hasn’t anyone bought it yet? There must be a reason.”

Studies back this up. The National Association of Realtors (NAR) found that homes sitting on the market for over 30 days often see a steep drop in buyer interest. By the time a house hits the 60-day mark, you’ll likely need to reduce the price to attract attention—and even then, buyers might not bite like they would if the listing was fresh. Homes with high DOM become less desirable, even if you finally lower the price to where it should have been all along.

The Stigma of Homes with Long Days on Market

Here’s the thing: when a house has been on the market too long, it starts to feel stale. Buyers might think there's something wrong with it, even if the issue was just an inflated price. Imagine scrolling through listings and seeing a house that’s been available for months—most people would assume there’s a catch.

Even if you drop the price later, buyers will wonder why it didn’t sell sooner and might offer even less than your reduced price, thinking they have room to negotiate. According to Zillow, homes that have been on the market too long and require price reductions typically sell for 2-5% less than those priced right from the beginning. So, even if you eventually find the “correct” price, you’re likely to lose money compared to homes that were priced right initially.

Why Correct Pricing Can Attract Multiple Offers

On the flip side, when a home is priced right from day one, it creates a sense of urgency for buyers. They’ll see your listing, compare it to others in the area, and realize it’s a fair deal, which can lead to multiple offers. In competitive markets, where inventory is low, this can lead to bidding wars and push the final sales price higher than your asking price.

A report from Redfin found that **homes priced right from the start are twice as likely to receive multiple offers** as those that have had their prices lowered. And homes that are priced competitively get snapped up fast, which further drives buyer interest. When buyers feel like they might miss out, they act quickly, and that often means bidding over the asking price to make sure they win the deal.

Fast Sales, Multiple Offers: The Sweet Spot

Getting your price right from the beginning doesn’t just get your house sold faster; it can actually net you more money. In fact, Realtor.com’s 2023 study showed that homes priced correctly from the start sold 15% faster than homes that had been reduced later. Not only that, but these homes had a 20% higher chance of getting multiple offers. That’s because when buyers feel like they’re competing for a well-priced home, they tend to submit strong offers, sometimes even waiving contingencies or offering above asking price to stand out.

The Psychology of Buyers: Why First Impressions Matter

There’s also a psychological factor at play here. Overpricing your home can discourage buyers from even taking a closer look. But when a home is priced fairly, it can generate a lot of initial interest and foot traffic. More showings mean more opportunities to receive offers, and when buyers see that others are interested, they’re more likely to jump in quickly, fearing they might miss out. 

When a home is priced correctly, buyers don’t hesitate. They know it’s a good deal, and they don’t want to risk losing it to someone else. This momentum can create a bidding environment where buyers push the price up in competition with each other, which is exactly the scenario you want as a seller.

Bottom Line

Pricing your home right the first time is crucial in today’s market. Homes that are priced too high take longer to sell, become less attractive over time, and often end up selling for less than they would have if priced correctly from the start. On the other hand, homes priced appropriately attract more interest, sell faster, and can even generate multiple offers, leading to a higher final sale price. By setting a fair price from day one, you’re setting yourself up for a quicker, smoother sale with the potential for better financial outcomes.

In a market where buyers are savvy and competition can be fierce, the right price can make all the difference.