It’s one of the most common questions we hear from sellers: “Should I list my home a little higher so I have room to negotiate?”
At first glance, it sounds logical, after all, who doesn’t want to leave space for bargaining? But in today’s market, listing high can actually cost you more than it helps. Here’s why.
Buyers Shop by Comparison
Most buyers start their search online, scrolling through hundreds of listings. If your home is priced above similar properties, it won’t even show up in their filtered searches, or worse, it’ll sit beside homes that clearly offer more value for the same price. Instead of attracting interest, an inflated price often leads buyers to skip right past your listing.
The Longer You Sit, the Less Leverage You Have
When a home lingers on the market, buyers start to wonder what’s wrong with it. Even if nothing is, the perception alone weakens your negotiating position. Overpriced homes usually end up making one or two price reductions before finally selling, often for less than they would have if priced correctly from the start.
Pricing Strategically Drives Competition
Homes priced accurately, or even slightly below fair market value, tend to attract more attention right from the start. When buyers see a home that feels well-priced compared to others, it stands out as a good opportunity in their minds. Even in a market where multiple offers aren’t the norm, the same psychology applies: buyers want what other buyers want. A listing that’s generating steady showings or visible interest signals value and creates a sense of urgency to act before someone else does. That initial momentum often leads to a stronger offer and a smoother negotiation, while overpriced homes tend to sit and lose appeal over time.
Appraisals Still Matter
Even if you find a buyer willing to pay over market value, the deal can fall apart if the home doesn’t appraise for that amount. Lenders rely on appraised value, not listing price, to approve financing. If the appraisal comes in low, you may need to lower the price or risk the buyer walking away.
A Smart Pricing Strategy Builds Trust
Buyers today are informed; they have access to recent sales and neighbourhood data. When your home is priced realistically, it sends a signal that you understand the market and are serious about selling, which makes buyers more confident and engaged.
The Bottom Line
Listing high and hoping to negotiate down might seem like a safe bet, but in reality, it usually leads to fewer showings, less interest, and a lower final sale price. A strategic, data-driven list price will always get you better results, faster and with less stress.
If you’re curious about what your home could sell for in today’s market, our team can provide a free, no-pressure home evaluation to help you price it right from day one.
