The DEVASTATING impacts of overpricing your home

Pricing a home isn’t a guessing game—it’s a strategy. In this episode of Selling Greenville, the host digs into months of fresh local sales data to answer a simple, high-stakes question: what actually happens when a seller shoots high and “tests the market”? The findings aren’t just interesting—they’re costly. Think slower sales, lower final prices, and a long tail of stress that could have been avoided with a grounded pricing plan.

Before getting into numbers, the episode lays the groundwork: there are always competing philosophies. Some advocate underpricing to spark a bidding frenzy. Others push overpricing to “leave room to negotiate.” But the data from recent Greenville-area sales tells a clearer story about where overpricing really leads—and why a disciplined, data-anchored list price outperforms wishful thinking almost every time.

Devastating impacts of overpricing your home

The focus of the analysis is simple and tight. The host pulled all Greenville-area subdivision sales under $500,000 during the past three months (subdivisions were chosen to keep apples-to-apples comparables). From there, one group was isolated: homes that required at least a $115,000 price drop at some point before going under contract. That’s the unmistakable fingerprint of overpricing.

Then came the comparisons—adjusted price per square foot (accounting for seller-paid closing costs so the numbers reflect true proceeds), plus days on market against the averages inside the same subdivisions.

What the price tells you (and what it costs)

• Adjusted price per square foot for overpriced homes: $124.60

• Subdivision average (including those homes): $136.70

That’s a $12 per square foot penalty for the sellers who started too high. On a 2,000-square-foot property, that’s $24,000 left on the table—even after all the painful price reductions. And this isn’t a one-off: 76.7% of those overpriced listings sold below their neighborhood’s average price per square foot.

Importantly, the median gap mirrored the average (about $13 per square foot), which supports the conclusion: the loss isn’t just skewed by a few outliers. It’s typical.

Time is money—and overpricing burns both

• Average days on market in the same subdivisions: 78 days

• Overpriced group average: 134.6 days

That’s 57 additional days—nearly two extra months of showings, stress, utilities, and carrying costs. And it’s widespread: 78.6% of the overpriced homes took longer to sell than their neighborhood averages. Again, the median matched the average (also 57 days), reinforcing the reliability of the pattern.

When a listing lingers, buyers notice. They begin to ask, “What’s wrong with it?” Repeated price drops invite “let’s-just-try” offers. Once that perception sets in, negotiators assume leverage—and use it.

Why sellers still try to “aim high”

The episode doesn’t sugarcoat it: sometimes sellers are advised to list high by agents who want the listing, promising a number that other professionals wouldn’t. Other times, it’s simple optimism or uncertainty about value. Either way, the market’s reaction is consistent. Start too high, and the listing doesn’t “find the right buyer at the right price.” It finds a longer runway, more concessions, and a lower net.

The rare exceptions—and why they’re rare

Complex, unique properties can muddy the waters. A recent local example: a home with a double lot near Greenville’s hospitals. It was reasonable to wonder whether the extra land would command a premium. In the end, city restrictions and easements undercut the theoretical value, proving how tricky (and uncommon) true outliers are. Most homes, even outside subdivisions, fit a clear range when you study the right comps and the active competition.

Underpricing vs. overpricing: the range-based mindset

The episode is careful to avoid championing extremes. Underpricing can leave money on the table. Overpricing nearly always backfires. The smarter approach: determine a fair range based on real comps and current competition, then choose a launch price inside that range based on your timing, the season, and what you’re up against. That’s how you sell faster without telegraphing weakness and stronger without scaring off qualified buyers.

A quick note on the method (so you can trust the numbers)

• Scope: Past three months, Greenville MLS, ≤ $500,000, subdivisions only, subdivisions with ≥ 3 sales in the period.

• Overpriced flag: Listings that required ≥ $115,000 price reduction before going under contract.

• Comparisons: Adjusted price per square foot (includes seller-paid costs) and days on market measured against the same subdivision.

• Data integrity: Average and median tracked closely across metrics—reducing the likelihood of outlier distortion.

• Context: The dataset skewed a bit higher in price than the broad market ($305,000 average sale), which makes the 57-day penalty even more striking.

The psychology spiral that hurts sellers

The numbers tell one story; human behavior tells the rest:

1. Overprice. Showings are slow. Feedback says “feels high.”

2. First reduction. Some activity. Savvy buyers start tracking.

3. Second reduction. The watch-list crowd smells blood. “They’ll take less.”

4. Low-ball season. Negotiations center around the drops, not the home’s merits.

5. Closing day. Net is smaller than it would’ve been with a right-sized launch—and the process took longer.

Why days on market matter as much as dollars

Holding costs don’t show up on the settlement statement, but they’re real: utilities, taxes, maintenance, insurance, lawn care, staging touches—not to mention the personal toll of keeping a property show-ready and leaving on short notice. Add 57 extra days to that routine, and the “let’s shoot high and see” experiment gets expensive in ways spreadsheets don’t capture.

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Bottom Line

The verdict is clear: the devastating impacts of overpricing your home are measurable and avoidable. In Greenville subdivisions over the past three months, listings that started too high and needed $115,000-plus in reductions sold for about $12 less per square foot and took about 57 days longer to go under contract. Most didn’t beat their neighborhood averages on price, and most lagged them on speed.

Aiming high doesn’t create leverage; it erodes it. The winning move is deceptively simple: let the data set the range, then launch inside it with a pricing story the market believes on day one.

Ien Araneta

Journal & Podcast Editor | Selling Greenville