In residential real estate sales, there is one decision that has a greater impact on the final outcome than the quality of photographs, listing copy, or the scale of marketing activities.
That decision is setting the right price from the very beginning of the sales process.
In real estate practice, the same scenario appears repeatedly:
“Let’s start higher — we can always negotiate later.”
In reality, this approach often leads to weeks without serious buyer interest, gradual price reductions, seller fatigue, and ultimately a lower final sale price than could have been achieved with a realistic initial pricing strategy.
The Most Expensive Mistake Is Usually Not Marketing — It Is Price
Suboptimal photography or weaker listing copy may slow a sale.
An incorrectly set price, however, can fundamentally undermine it.
In real estate, price is not just a number. It functions as:
- a signal to the market,
- a filter within online buyer searches,
- a reference point when comparing competing listings,
- and a psychological trigger shaping perceived value (“fairly priced” vs. “out of touch”).
Both market data and real-world experience point to a simple rule:
The market may forgive many mistakes, but it rarely forgives price.
Price Is Not the Objective. Price Is the Tool
It is natural for sellers to aim for the highest possible price. The problem arises when the desired outcome turns into a listing price that fails to reflect current demand and buyer behavior.
International data consistently confirm that incorrect pricing prolongs the sales process and worsens the final result:
- A Zillow analysis showed that homes sold quickly typically closed at only about 1% below the asking price. Properties that remained on the market for around two months sold at roughly 5% below asking, while those listed for extended periods (approximately 11 months) averaged discounts of up to 12%.
- In the United Kingdom, Zoopla reported that properties requiring a price reduction took on average 2.4 times longer to sell than those that did not.
Translated into practice:
pricing above market level does not merely extend time on market — it often results in weaker negotiating leverage and larger price concessions.
The First 10–21 Days Are Critical
One of the most underestimated factors in residential sales is the fact that a property achieves its maximum visibility immediately after launch on listing platforms.
During this initial period:
- it reaches buyers with active price alerts,
- it is perceived as a “new” listing,
- and it generates the highest number of clicks, saves, and first inquiries.
Rightmove, one of Europe’s largest real estate platforms, recommends implementing any necessary price adjustment as early as possible. If a correction is made within the first three weeks, the initial momentum of the listing can still be leveraged.
Their internal guideline is clear:
after 10 days or 10 viewings (whichever occurs first), it is time to reassess whether the pricing strategy is correct.
At Herrys, we apply this principle as a disciplined control point. If pricing aligns with market reality, demand follows. If the market remains silent, the causes must be analyzed — and price is very often the key factor.
What Happens When a Property Is Overpriced
Exclusion from a Large Segment of Buyers
Buyers search within defined price brackets. If a property is realistically worth €200,000 but is listed at €215,000, buyers searching up to €200,000 will not see it at all, while buyers at the €215,000 level will compare it against stronger alternatives.
Listing Fatigue and Loss of Credibility
Properties that remain on the market for extended periods naturally raise questions. Longer time on market reduces buyers’ willingness to pay the full asking price — a pattern clearly confirmed by Zillow data.
Larger Price Reductions at Later Stages
According to the National Association of Realtors, properties on the market for 61–90 days experienced average price reductions of approximately 5.2%. After 120 days, the average reduction increased to around 8.4%.
Withdrawal from the Market
Some sellers ultimately withdraw their listing rather than accept a lower price. This behavior is not unique to the U.S. market; it is a universal consequence of seller psychology.
Why Owners Frequently Overprice Their Properties
Research from the Wharton School identifies a phenomenon known as loss aversion. Property owners tend to set higher asking prices to avoid the feeling of “selling at a loss,” even when that loss exists only as a subjective comparison to past prices.
The same research indicates that pricing a property approximately 20% above market value can reduce the likelihood of a quick sale by 20–30%.
How We Set Prices at HERRYS: A Structured Methodology
When valuing property, we rely on process, not intuition:
- We distinguish between market value, marketing price, and the minimum acceptable price.
- We analyze sold, active, and reserved properties.
- We account for factors automated valuations cannot capture (condition, orientation, noise exposure, parking, legal status).
- We ensure the price is defensible from a mortgage and bank valuation perspective.
- We define a clear control point for evaluating market response in advance.
Conclusion: The Right Price Creates Competition — and Competition Creates Results
A successful property sale is not about “listing high and waiting.”
It is about:
- targeting the correct price segment,
- leveraging the first weeks of exposure,
- creating healthy competition among buyers,
- and achieving a better outcome not only in price, but also in terms of certainty, timing, and transaction conditions.
If you are considering selling a property, we would be pleased to prepare a professional pricing framework and explain how to set a price that works in your favor — not against you.
