The Risk of Overpricing Your Greater Philadelphia Home

Everyone wants top dollar when selling their home. It’s natural to think, “What if I just try a higher number and see what happens?” After all, whether you’re selling a car, a household item, or your home, the goal is always to get the most money possible. But when it comes to real estate, overpricing can quietly work against you.

Understanding the risks and knowing when to reduce the price can make a meaningful difference in how quickly your home sells and how much you ultimately walk away with.

Why overpricing a home is so dangerous. One of the biggest mistakes sellers can make is overpricing their home from the start. This is not recommended because the first 14 days on the market are the most important. Regardless of where a home is priced, the first 14 days are when a listing receives the most attention and eyes from buyers.

This short window is critical. If a home is overpriced during that period, buyers may skip over it entirely. Once that early momentum is lost, it’s very difficult to get it back. Overpricing isn’t just about starting high; it’s about missing the moment when buyers are paying the closest attention.

The first 14 days of a listing are when serious buyers are most closely watching. This is when your home is new to the market and generates the most interest. Because of that, the price has to be right from the beginning.

Statistically, homes that sell within the first month tend to net the seller more money. In fact, once a home goes past the 30-day mark and requires a price reduction, sellers often end up with less than they would have if the home had been priced correctly from day one. Picking a number and hoping the market agrees simply doesn’t work long term.

How a home should be priced correctly. Pricing a home correctly starts with reviewing comparable properties that most closely match the home being sold. This includes breaking down the price per square foot and examining the number of bedrooms, bathrooms, amenities, and the level of home updates.

This process removes guesswork from pricing. Instead of choosing a number based on emotion, pricing is built on what similar homes have already sold for. When this approach is used, the home is positioned to attract buyers during that crucial first 14-day window.

When a price reduction becomes necessary. Some sellers still want to try a higher number, and that’s understandable. Many homeowners feel strongly about testing the market. In the past, the standard timeline for evaluating a price was 30 days. If there were many showings but no offers after that point, it was clear there was a price problem.

Today, that timeline has changed. As competition has increased, the decision point has moved up to 14 days. If there is little or no traction on a listing within the first two weeks, a price reduction should be considered. Waiting longer can cause the listing to become stale and less attractive to buyers.

Selling a home isn’t only about pricing; experience and strategy matter too. After nearly 20 years of acting as a fiduciary and putting clients’ interests first, one thing remains consistent: success leaves clues.

Hundreds of sales and negotiations have shown that pricing correctly, watching activity early, and adjusting quickly when necessary lead to better outcomes. Strategy, marketing, and negotiation all play a role, but it starts with getting the price right.

If you’re thinking about selling your property, having an experienced professional walk through your home can be extremely valuable. You’ll receive guidance on what to do, and just as importantly, what not to do, before you list. Just reach out anytime at (610) 709-5147 or email john@jrsrealtygroup.com.

There is never any cost or obligation to have this conversation, but the right advice at the beginning can help you avoid costly mistakes and protect your bottom line.