There’s one big mistake you need to avoid when selling your house this year: setting your price too high. It might seem like overpricing gives you room to negotiate or boosts your profit, but the reality is—it usually backfires.

In fact, Realtor.com says nearly 20% of sellers—1 in 5—have to reduce their asking price to sell. Here’s why pricing too high can be a costly mistake—and how to avoid it.

Overpricing Pushes Buyers Away

With today’s mortgage rates and home prices, buyers are already stretching their budgets. When they see a house priced too high, they’re not thinking “let’s negotiate”—they’re thinking “next.” The National Association of Realtors (NAR) explains:

“Some sellers are pricing their homes higher than ever just because they can, but this may drive away serious buyers . . .”

If buyers skip your listing, they won’t see your home—and no showings means no offers.

The Longer Your House Sits, the More Skeptical Buyers Become

Overpriced homes tend to linger on the market. The longer a listing sits, the more buyers start to wonder: “What’s wrong with it?” Even if it’s just the price, the extra time creates doubt. As U.S. News puts it:

“. . . setting an unrealistically high price with the idea that you can come down later doesn’t work in real estate . . . A home that’s overpriced in the beginning tends to stay on the market longer, even after the price is cut, because buyers think there must be something wrong with it.”

Eventually, you’ll likely have to drop the price anyway—but at that point, it might raise red flags rather than attract new interest.

The Key to Finding the Right Price

The solution is simple: work with a local real estate agent who knows the market and will be honest with you. You don’t want someone who just agrees with any price you throw out—you want someone who brings expertise to the table.

The right agent uses real-time local data to recommend a price that grabs attention, attracts qualified buyers, and still gets you a great return. That kind of guidance is the difference between sitting and selling.

Bottom Line

Remember: if the price isn’t compelling, it’s not selling. Don’t scare off buyers with a sky-high price. Instead, work with a professional who knows how to price your home right from the start.

Connect with a local agent to make sure your home hits the market with the right price—and gets sold.