How NOT to Price Your Home When Selling

One of the most common mistakes sellers make happens before the sign even goes up on the lawn: pricing the home wrong.

In this video, Joe Gonzalez shares a real conversation he had with a homeowner, and why a popular pricing strategy is “a recipe for disaster.”

The “room for negotiation” trap

A homeowner asked Joe how close to list price homes were selling. His answer: usually within about 5%, which in that case worked out to roughly $25,000.

So the seller’s plan was simple: “I want $700,000, so I’ll list at $725,000 and negotiate down to $700,000.”

It sounds logical, but it doesn’t work that way.

Why overpricing backfires

The average gap between list and sale price comes from homes that were priced correctly to begin with. When you add an extra cushion on top of what you want, a few things happen:

• Buyers compare your home to similar homes and see it as overpriced.
• Fewer people book showings, because your home falls outside their search range.
• Your listing sits, and homes that sit often end up selling for less after price drops.

How to price your home the right way

1. Hire a REALTOR® you trust to do a detailed Comparative Market Analysis (CMA).
2. They study recently sold homes similar to yours in your neighbourhood.
3. They factor in current competition, meaning the homes buyers will compare yours to right now.
4. They give you a suggested list price based on real data, not on what you hope to net.

From there, you and your agent agree on a strategy together.

Educated sellers have better outcomes

Joe also shares a story about sellers who started out expecting far more than their home was worth. Before their pricing meeting, they did their own research on recent sales. By the time they sat down together, they understood the market, and the conversation was much easier.

When you know what you’re up against and what similar homes have sold for, you can feel confident in your agent’s advice and work together to get your home sold.

Thinking of selling in Niagara?

Get a free, no-obligation home evaluation based on real local sales, not an online guess.

Call 289-276-1716 or get your home value.