During the pandemic, a perfect storm of historically low mortgage rates, remote work, and a scramble for more space fueled an unprecedented homebuying frenzy.
This created a white-hot seller’s market in which buyers were desperate to secure a home, leading to bidding wars and houses selling far above list price. One June 2021 CNN headline read, “The housing market is so hot buyers are paying $1 million over asking price.”
Neighbors bragged. Selling prices soared. And homeowners wondered if they should become home sellers. For those who didn’t sell, they remembered the price tags.
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Those memories are likely the cause of what is now the biggest mistake home sellers are making in today’s market — overpricing.
“It’s no longer 2021, and sellers have to be realistic that the market has stabilized and we aren’t seeing market appreciation like we did back then,” says Kim Kovacs, a top-rated real estate agent in Columbus, Ohio, with nearly 30 years of experience. “It’s imperative to price the home accordingly on day one.”
Why overpricing is the top mistake sellers make
In a nationwide HomeLight survey, 77% of real estate agents identified overpricing as the number-one mistake homeowners make when selling today. While it may feel tempting to “test the market” with a higher price, agents say this strategy almost always backfires in the current housing landscape.
Using online tools and AI, buyers are more informed than ever. They can easily see what comparable homes (comps) are selling for, and they are quick to dismiss listings they perceive as overpriced.
“A seller in today’s market has to be savvy enough to know that buyers feel empowered and ready to negotiate,” says Melanie Thomas, a top agent in Orlando, Florida. “The days when you could assume multiple offers over the asking price are long over. The only homes that will sell with short days on market are the ones that are priced correctly from the start.”
Once a home sits on the market too long, it can take on a stigma that something must be wrong with it. Sellers often end up cutting the price anyway, sometimes below what the home might have sold for if it had been priced realistically from the start.
“Overpricing is one of the biggest reasons homes sit too long,” explains Gabrielle Ruggeri, an agent serving Somerset County, New Jersey. “Sellers should work with their agent to stay informed on local comps, buyer demand, and how interest rates are shaping the market. A smart, informed price brings the right buyers in early.”
How overpricing impacts your home sale
When sellers overshoot on price, the consequences can stack up quickly. Agents in the HomeLight survey pointed to these common outcomes:
- Homes tend to sit on the market longer, raising red flags for buyers.
- A stalled sale can delay your own moving plans.
- Without sale proceeds, you may miss out on the next home you want.
- Price reductions usually follow, which can sap momentum and leverage.
- Buyers will turn to similar houses with lower price tags.
- Deals are more likely to collapse after inspections or appraisals.
But perhaps the biggest impact will be on your wallet. When a home is overpriced, sellers often walk away with less than if they had priced competitively at the start.
Aimee Johnson, an agent in Waldorf, Maryland, with 30 years of experience, advises home sellers to look at the bigger picture before insisting on listing over market value.
“Understand the times we are in — so much instability in the workforce, the economy, the government — buyers are hesitant after three-plus years of massive price increases and unflinching rates. Be aware and make a reasonable plan.”
For perspective, in July 2021, during the height of the pandemic homebuying frenzy, U.S. homes sold in about 16 days, on average. In some of the hottest markets, properties went under contract in just 24 hours.
Today, due to high interest rates and affordability fears, most homes spend 47-62 days on market (DOM) — the slowest pace in 10 years.
As a result, 82% of agents nationwide reported an increase in price cuts during the second quarter of 2025 compared to the same time last year.
Why pricing right from the start matters
In today’s uncertain market, the first impression your home makes can make or break the sale. HomeLight’s research found that half of the surveyed agents recommend pricing a home slightly below market value to spark competition and draw in multiple offers.
“Pricing just under market will get showings, as buyers are not willing to pay top dollar in this economy,” says Marine City, Michigan, agent Wynne Achatz, who has been pricing homes for 47 years.
Richard Bocchieri, a West Islip, New York, agent with nearly four decades of experience, agrees: “Price your house aggressively to get as many people to view the home as possible. Price it just under market value.”
Another 25% of agents suggest pricing right at current market value. Only 1% think pricing above market still works, even as a negotiation tactic.
“The price has to be spot on or slightly under market value,” warns Tiffany Bean, a Houston agent on the top-rated Will Borel team. “In this extremely competitive and difficult market, you cannot afford to miss out on any possible opportunity.”
Other mistakes sellers make that cost time and money
Beyond pricing, surveyed agents pointed to several preparation missteps that slow down sales and chip away at value:
- Not decluttering or depersonalizing the home
- Skipping a deep clean or deodorizing
- Ignoring repairs and touch-ups
Even small oversights can leave buyers with a negative impression — or worse, cause them to look elsewhere.
“First impressions still matter, and a beautifully presented home can be the difference between a quick showing and a second thought,” says Brenda Sukenik, an agent on the Damon Williamson Team in Houston, Texas. “What ultimately moves them from ‘shopper’ to ‘offer’ is confidence. Buyers want to feel they are making a smart purchase.”
What actually attracts today’s homebuyers
Today’s buyers are focused on homes that feel move-in ready. According to HomeLight’s Top Agent Insights survey:
- 76% of agents say a move-in ready condition is the top selling point.
- Professional staging can add an average of $13,477 to the sale price.
- Staged homes sell one to two weeks faster, according to 34% of agents.
“Buyers today aren’t just looking for a house, they’re looking for a home that feels like a solid, well-maintained investment,” says Sukenik. “Even the smallest details matter, such as fresh paint, tightened fixtures, and repaired latches or door handles.”
She adds this caveat: “However, even the best preparation and marketing can be undermined by pricing missteps. Overpricing a home, no matter how much work has been invested, is one of the fastest ways to stall a sale.”
What’s happening behind the scenes of failed sales
For sellers who are still pressing for over-the-top pricing, agents also warn that deals are falling through at higher rates.
According to the HomeLight survey, 62% of agents reported seeing more sales collapse in the current market compared to this time last year. The top reasons include:
- Home inspections uncovering major issues
- Buyer financing falling through
- Buyers getting cold feet or changing their minds
These risks, which are often tied to affordability and confidence, reinforce why setting a realistic price and preparing a home well can help keep transactions on track.
The bottom line for sellers
The days of buyers lining up to bid far over asking are in the rearview mirror. Today’s housing market is steadier, more cautious, and more sensitive to price. Sellers who cling to the memories of pandemic-era pricing risk making the single biggest mistake — overpricing their home.
A home priced right from day one attracts stronger offers and keeps the entire sale on track. Setting an accurate selling price starts with hiring an experienced agent who knows your local market and can provide a comparative market analysis (CMA).
One way to evaluate agents in your area is via free online tools, such as HomeLight’s Agent Match platform.
“We are not in 2021’s market; find a Realtor who has sold homes in the pre-pandemic market,” advises Ryan Briggs, who has been helping Maryland sellers for nearly 25 years. “Every major statistic from the past 12 months shows that we are right back to 2019’s numbers — nothing to be concerned about, just reality.”
»Learn more: To help your sale go even smoother, try our Home Seller Mistake Mashup Machine below:
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