T
he longer a home sits on the market, the less likely it is to sell for its original asking price. In fact, sellers who price their properties correctly from the start can expect a quick sale at nearly full value. However, many sellers take an aspirational approach, setting prices higher than the market dictates due to fear of leaving money on the table.

    This psychology-driven decision often backfires, as buyers are experts in pricing and quickly recognize overpriced listings. As a result, these properties languish on the market, attracting the wrong set of buyers who won't compromise on their budget. In contrast, sellers who price their homes correctly from the start can expect to sell within 31 days with only a 1.9% discount.

    The consequences of mispricing are stark: overpriced listings can take four months or more to sell, resulting in an 8.4% hit on the original asking price. This is because buyers lose interest in stale listings and sellers often chase the market down by making successive price cuts, which rarely regain serious buyer attention.

    Neighborhood and property type have little bearing on this trend, as properties that come to market with ambitious pricing end up with longer times on the market and larger discounts. Whether it's a pre-war co-op or a new condo, buyers are acutely aware of market conditions, and listings that stray too far from those conditions don't stand a chance.

    Ultimately, sellers should focus on creating urgency by pricing their properties correctly from the start. A well-priced property brings in buyers with matching budgets quickly, and those buyers are more likely to bid higher to secure the deal. By pricing smart, selling fast, and moving on, sellers can avoid the pitfalls of overpricing and achieve a successful sale.