The Dangers of Overpricing Your Home

There’s one thing that never goes out of style in real estate—confidence. But when that confidence turns into overconfidence (and overpricing), it can cost homeowners more than they expect.

Greenville’s housing market is full of lessons, and one of its oldest still holds true: when it comes to pricing your home, reality always wins over wishful thinking.

A few years back, a deep dive into local MLS data revealed what many agents had long suspected—and what some sellers still don’t want to hear. Overpricing doesn’t lead to higher offers; it leads to lower sales, longer market times, and more price cuts than anyone wants to admit.

Why Overpricing Your Home Hurts You

The focus keyword, overpricing your home, perfectly captures the temptation that sellers face when listing: “Why not start high? We can always come down later.”

Sounds reasonable, right? Except it rarely works that way.

Data from Greenville listings showed that homes overpriced by $15,000 or more sold for an average of $12 less per square foot than those priced correctly or slightly below market value. In plain English: aiming too high often means landing much lower.

(Think of it like showing up to a first date in a tuxedo at a taco truck—you might be confident, but you’ve misread the room.)

When a home hits the market overpriced, it sits longer, gathers digital dust, and quickly becomes “that listing.” Buyers assume something must be wrong, and when offers finally come in, they tend to be… humbling.

The Appraisal Myth

Sometimes, sellers feel justified in their asking price because they have an appraisal in hand. But here’s the thing—appraisals aren’t crystal balls; they’re educated guesses dressed in official language.

They rely on past sales, not present buyer behavior, and are deeply subjective. In fact, two appraisals on the same Greenville home, taken just weeks apart, can differ by $30,000 to $50,000. (If you’ve ever had two friends give you totally opposite opinions on your new haircut—same concept.)

And then there’s the infamous basement debate. Many local appraisers automatically assign only 50% value to any square footage below grade, even if the space is fully finished and nicer than the main floor. According to builders, that logic makes about as much sense as saying a basement costs less to build than a second story—spoiler: it doesn’t.

The point? Appraisals are helpful reference points, not gospel truths. They’re best used as part of a pricing strategy—not the sole justification for one.

What the Greenville Data Shows

A review of 37 Greenville County listings that referenced appraisals revealed clear trends.

Of those, 25 homes were listed below their appraised value, while only two dared to list above it. The results were stark:

• Homes priced above their appraisal had to reduce prices by roughly 5%.

• Homes priced slightly above or “unknown” relative to appraisal are reduced by 3%.

• Homes listed below appraisal barely moved—less than 1% in price cuts.

And when it came to actually selling?

• Just 50% of those priced above appraisal sold.

• 84% of those priced below appraisal sold or went under contract.

  
  

The math speaks volumes. The more realistic the price, the faster the sale—and the better the outcome.

(Who knew that humility could be so profitable?)

The Psychology Behind It

When buyers scroll through listings, they’re not thinking about your appraisal, your upgrades, or the sweat equity you poured into that kitchen backsplash. They’re comparing what’s on the market today.

If your home feels overpriced, they don’t think, “Maybe it’s worth it.”

They think, “Let’s wait for a price drop.”

That waiting game is what kills momentum. Once a listing lingers too long, it loses its shine.

Even if the price eventually comes down, the damage is done. Buyers start to wonder, “What’s wrong with it? ”—and that’s never a good question to inspire.

Pricing Below Appraisal: The Secret Advantage

Counterintuitive as it sounds, pricing your home slightly below appraisal can actually earn you more.

Why? Because it creates competition. When a listing looks like a good deal, buyers rush in. Multiple offers drive prices up—sometimes even above list price, as the Greenville data showed.

Nearly 44% of below-appraisal homes sold at or above their asking price, compared to zero percent for homes priced higher.

It’s a simple but powerful truth: a home that looks like a bargain will always sell faster than one that feels inflated. (It’s like real estate’s version of “Buy one, get ”one”—irresistible, even if you only wanted one.)

Days on Market Don’t Lie

Here’s where overpricing really hurts—time.

Homes listed above appraisal sat on the market for an average of 122 days before selling.

Those priced below appraisal? Just 60 days.

Every extra week on the market chips away at leverage, confidence, and ultimately, profit.

The takeaway? The market is brutally honest—and it doesn’t reward wishful thinking.

Honesty Over Hype

Sellers often overprice out of hope, pride, or emotion (the holy trinity of real estate regret). After all, it’s their home—filled with memories, investments, and maybe a few questionable DIY paint jobs (because nothing says “personal touch” like a slightly uneven accent wall that only looks straight after two glasses of wine). But the market doesn’t factor in sentiment.

That’s why the best real estate agents are part strategist, part therapist. Their job isn’t just to list—it’s to guide sellers through the emotional side of pricing. Sometimes that means having tough conversations about reality versus desire.

Sure, telling a seller their home isn’t worth $500,000 when they feel it is can be awkward. (It’s a bit like telling someone their dog isn’t as cute as they think—necessary, but delicate.)

Still, honesty saves sellers from drawn-out listings, endless reductions, and ultimately, disappointment.

Watch Or Listen To The Selling Greenville Podcast

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Bottom Line

You can’t fool the market—not with glossy photos, clever descriptions, or wishful pricing. Overpricing your home doesn’t create leverage; it kills it.

Homes priced realistically—or even slightly below—sell faster, attract more buyers, and often bring in stronger offers. Overpricing, on the other hand, is like setting a trap for yourself: it feels smart until you’re the one caught in it.

So if you’re selling in Greenville, skip the ego pricing. The market already knows what your home is worth—and if you listen closely, it’s probably whispering, “Start lower, finish higher.”

Ien Araneta

Journal & Podcast Editor | Selling Greenville