Pricing Your House Right: Don’t Start Too High or it's All Downhill From There

So you’ve got your house all prepped and ready to hit the market, and you want top dollar for it, right? Naturally, you’re tempted to price it high to see what you can get. But here’s a truth every smart seller needs to know: When you price your house too high, there’s only one way negotiations are going to go—and that’s down.

It’s not just buyers who know this; their agents know it too. And they’re all ready to pounce the minute they sense that you’ve overpriced your home. So let's talk about why starting high is like shooting yourself in the foot and how pricing right can actually help you get the best deal upwards.

The One-Way Ticket: Why Negotiations Only Go Down When You Overprice

Let’s be real for a moment—if you price your home above its true market value, buyers aren’t rushing in to pay the big bucks. Instead, they’re pulling out the magnifying glass, looking for every tiny flaw, and preparing to haggle. You see, overpriced homes make buyers think they have a bargaining advantage. They’ll start low, go lower, and suddenly you’re having awkward conversations about how much you need to slash your price just to make a deal.

And it's not just buyers who sense a chance to cut you down. Buyer agents will see your home as a prime target for negotiation, coaching their clients to come in with lowball offers because they know you're up against a wall. Agents are trained negotiators, and the second they see your home’s inflated price, they know exactly how to play the game.

When You Overprice, You Invite Lowball Offers

The biggest danger of overpricing is that buyers and their agents will view your home as “room for negotiation.” And if that’s how they see it, they will always come in below your asking price—often way below. Even if a buyer likes your home, they’re going to come in lower because they assume that’s just what you do with an overpriced listing. Your original "high and mighty" price becomes irrelevant the moment they start talking numbers.

Essentially, you’re starting a downward spiral from the very first showing. And once buyers see that you're willing to negotiate down, they'll keep pushing for a lower price, knowing you're the one with the pressure to sell.

The Scarcity Mindset: Price It Right to Move It Up

If you price your home realistically—or even slightly under market value—you flip the script entirely. Now, you’re not the one who’s going to be squeezed into lowering your price; you’re going to be the one receiving offers that go up.

Pricing right from the start makes buyers realize they need to move fast to snag a great deal. And when there’s urgency, buyers are far more likely to offer you the price you're asking—or even above. Because nobody wants to lose out to another bidder. It’s basic psychology: Once buyers see others are interested in your home, their own FOMO (Fear of Missing Out) kicks in. And that’s when your listing price goes from a ceiling to a floor—the very floor that new offers keep climbing over.

Be the Deal, Don’t Miss the Deal

In real estate, the power of perception is everything. When buyers think your home is a steal, they’re ready to make their best offer—and sometimes better than their best. But when you start too high, all you’re doing is opening the door for buyers to come in low, nitpick everything, and make you lower your price until you’re practically paying them to take it off your hands.

The moral of the story? Price it right from the beginning. Don't be the "oh, that house is still on the market" property that agents use as a benchmark for their clients to compare against better deals. Be the house that everyone wants and has to fight to get.

Remember: Upward Bidding = Better Terms

The beauty of competitive offers isn’t just the price. When buyers know they're competing for your home, they’re more likely to give you better terms—like waiving contingencies, being flexible with your move-out date, or even offering cash. Pricing right isn’t just about the sale price; it’s about setting yourself up for a smooth, stress-free closing that works in your favor.

So forget the temptation to price high “just to see what happens.” You already know what happens: The price only goes down, and everyone—including buyers and their agents—knows it. Instead, start at a price that makes people sit up and say, “Wow, we need to see this one!” And once they’re hooked, let them do the heavy lifting by bidding up and fighting for your home.

Price to attract, not repel—and watch how quickly those offers start stacking up. That’s how you really beat the market, my friends. 👊