You can always start high and adjust later, but in today's Sacramento market, that strategy quietly costs you buyers and negotiating power.

We hear it from sellers all the time: "Can I just price my home high and come down later?" The thinking makes sense. 

Most sellers haven't sold in years. Maybe it's been five years, maybe seven. We're working with a seller right now who hasn't moved in over 30 years, and they need every last penny out of this sale. When you only sell once in a long while, getting top dollar feels like it depends on starting high and leaving room to negotiate.

So let's answer the question honestly. Can you price your home high and come down later? Yes, you can. It's your house, it's your rules, and nobody can tell you what to list it at. The real question is whether it's a good idea, and the answer is no.

Overpricing pushes buyers away instead of up. Say your home is worth $500,000 and you list it at a million. Is it going to sell for a million? Probably not. You'll be making adjustments along the way, and maybe eventually you'll get an offer. Now flip the same coin. If we priced your home at a dollar, would it sell for a dollar? Absolutely not. People would tour it, the offers would start coming in, buyers would bid each other up, 200, 250, 350, and your home would likely sell at or above its real value of $500,000. Pricing too high does the opposite of what sellers hope. It narrows your buyer pool instead of widening it.

"You won't wait 90 days to learn you're overpriced. You'll know by the first weekend."

You'll know you're overpriced by the first weekend. Here's the part most sellers miss. It doesn't take 30, 60, or 90 days to figure out you're priced too high. If you're not getting at least five private showings that first week, your home is overpriced, and you need a price adjustment quickly. The market tells you fast if you're willing to listen.

This is the Sacramento market we're in right now. This isn't unique to one house. Across the Greater Sacramento region, most of the homes that recently went pending had to make about a 5% price adjustment, roughly a $39,000 difference between where they started and what they sold for. Inventory is tight, and in that sense, it still feels like a seller's market. But what we're seeing is buyers coming in below the list price and asking for credits. If you get an offer asking for $5,000, $10,000, or even $15,000 in seller credits, that's normal in today's market.

Pricing right, or even slightly low, usually wins. So, can you start high? Yes. Do we recommend it? No. We'd rather price your home correctly, maybe even a little below market, to draw multiple offers, bid the price up, and sell quickly. Every day your home sits on the market, you lose a little negotiating power. The longer it sits, the weaker your position gets.

If you're a buyer, the flip side is your opportunity. If a home has been on the market 30 days or longer, make an offer. Come in $20,000, $30,000, or even $40,000 below ask, and ask for credits. It doesn't cost anything to start the conversation, and that's really what pricing is about. Sellers start high because they want someone to negotiate with, so buyers, bring those offers, and let's start that conversation.

If you want a team that specializes in pricing your home right, getting your marketing in front of the right buyers, and negotiating top dollar for your home, we'd love to help. Call or text us at 855-935-6673, email us at [email protected], or visit made4morerealty.com. Expect more and get more with Made4More Realty.