Home Sellers Are Overpricing by $39,000 on Average — Here’s How to Boost Your Chances in a Cooling Market

As the housing market cools down, many U.S. homeowners are finding themselves in a tough spot. After enjoying years of soaring home values and quick sales, today’s landscape has flipped buyers are cautious, mortgage rates are high, and listings are piling up.

According to new data from Redfin, the typical home seller is now asking around 9% more than what buyers are willing to pay. That translates to about $39,000 a hefty gap that can stall sales and force reluctant price cuts.

So what can sellers do to navigate this shifting terrain and actually get their homes sold? It comes down to smart pricing, understanding buyer behavior, and knowing when to pivot.

The Hidden Costs of Holding Out for Too Much

It’s tempting to price your home high and wait for the perfect buyer. But in today’s market, that strategy could cost you more than you think.

When a home lingers on the market, it racks up thousands in carrying costs mortgage payments, taxes, insurance, and upkeep. For example, a $500,000 home with monthly costs of $3,000 that sits unsold for three months could cost the owner $9,000 just to hold onto it.

And that’s not even considering potential price cuts or buyer incentives needed to finally close the deal.

Then there’s the market risk. With inventory on the rise Realtor reported a 30% year-over-year jump in active listings this April sellers are facing more competition. New listings can push older, higher-priced homes further down buyers’ wishlists.

One homeowner in Utah, Spencer Bauman, had to slash $75,000 off his asking price after going more than two months without a single offer. That kind of delay can put financial goals or plans to buy another home on hold indefinitely.

Price It Right, Sell It Fast

There’s real power in pricing your home correctly from the start. Not only does it attract more buyer interest, but it also avoids the “stale listing” effect when a home sits on the market too long and buyers start to wonder what’s wrong with it.

Research shows that most serious buyer activity happens in the first two to three weeks after a home hits the market. If the price is too high during that key window, you may miss out on potential offers and end up making bigger cuts later on.

Homes priced accurately tend to sell faster, receive stronger offers, and avoid drawn-out negotiations. This helps sellers maintain a predictable timeline which is crucial if you’re relying on proceeds for your next home or trying to avoid interim financing like bridge loans.

Chaley McVay, a Redfin Premier Agent, put it simply: “If you overprice, chances are you’ll get no activity, and then it will become even harder to recoup your investment.”

Find the Sweet Spot Not Too High, Not Too Low

You don’t need to underprice your home to attract attention. What you need is a smart pricing strategy grounded in data not emotion.

Start with a comparative market analysis. Look at what similar homes in your area have actually sold for, not just the list prices. In some cases, pricing slightly below comparable homes can spark competition and lead to multiple offers.

Even psychological pricing tricks can help. A home listed at $489,000 may feel more affordable and approachable than one at $500,000, even though the difference is minimal.

Another pro tip: set a clear timeline. If your home hasn’t received any strong interest within 21 days, be ready to make a change whether that means adjusting the price, improving curb appeal, or sweetening the deal for buyers.

The Bottom Line

In a market where buyers are cautious and inventory is growing, the days of “name your price” are behind us. But that doesn’t mean you can’t succeed. Sellers who understand current market dynamics, stay flexible, and make data-driven decisions will have the best chance of making a sale without leaving money on the table.

If you’re serious about selling, now’s the time to ditch wishful thinking and get real about pricing. Your future buyer is out there and they’re ready to make a move when the numbers make sense. Or visit Nadlan Capital Group for more information.