Why Overpricing Your Home Can Cost You in the Long Run

Home values in Bakersfield and across Kern County have continued to rise in recent years. Many homeowners who are considering selling have heard this encouraging news and assume their property must be worth significantly more than it was a few years ago. And to be fair, they are partially right. Home values have appreciated. But a closer look reveals that the rate of appreciation has been much more gradual than many people assume.

The dramatic increases we saw in 2020 and 2021 were fueled by unique and unsustainable market conditions. Low interest rates, limited inventory, and a surge in buyer demand caused home prices to skyrocket in a short amount of time. However, the market has since stabilized. While values are still going up, they are now rising at a more predictable and sustainable pace. That pace is nothing like the extreme spikes we saw during the peak of the pandemic market.

Unfortunately, this shift has created a gap between perception and reality. Many Sellers are still operating under the assumption that the same explosive growth applies to their property value today. As a result, they often overprice their home when they list it for sale. While the idea of listing high with “room to negotiate” might sound like a smart strategy, the truth is that overpricing is one of the most common, and most costly, mistakes a Seller can make.

What Happens When You Overprice

When a home hits the market, the first few weeks are critical. That is when buyer interest is at its highest. Buyers who are actively looking have alerts set, are working closely with their agents, and are watching for new listings. If your home comes on the market and is priced appropriately, you are more likely to generate immediate showings and strong interest. In some cases, that momentum even leads to multiple offers.

But when a home is overpriced, it tends to sit. Buyers scroll past it because it does not seem competitive for the area or condition. Even worse, some buyers may not see it at all if they have set their search parameters based on realistic pricing. For example, if a buyer is pre-approved up to $500,000 and your home is listed at $515,000 even though its market value is closer to $495,000, that buyer will never even know your property is available.

After several weeks on the market with little to no activity, Sellers often feel pressure to lower the price. But by then, much of the initial momentum has already been lost. The listing starts to look stale. Buyers and agents begin to assume that something must be wrong with the home, and the property may start to accumulate a stigma that is hard to shake.

Even after one or more price reductions, offers that do eventually come in are often lower than they would have been had the home been priced correctly from the beginning. Buyers see the history of price changes and use it to justify writing under-asking offers. In many cases, Sellers end up accepting less than what they could have originally earned, simply because they chased the market down instead of pricing it right from day one.

The Psychology of Pricing

Pricing a home is not just about square footage or how much was spent on recent upgrades. It is about understanding buyer psychology and market behavior. Today’s buyers are informed. They are using online tools, watching interest rates closely, and comparing every home they view to others in the neighborhood. If your home appears overpriced compared to similar listings, buyers will either move on quickly or come in with aggressive lowball offers.

Additionally, homes that sit on the market for too long can trigger concerns with appraisers and lenders. Even if you do receive an offer, if the home does not appraise for the contract price, the buyer’s loan could fall through or you may be forced to lower the price during escrow. This is yet another way overpricing can backfire.

The Importance of Market Knowledge

Accurate pricing starts with having the right information. At The McCarty Group, we use detailed, up-to-date market data to evaluate your home’s value. We consider recent comparable sales, current competition, location, condition, and buyer demand. But we also take it a step further by factoring in what we are seeing in real-time with our own listings and buyer activity.

That boots-on-the-ground perspective is crucial. Just because one home down the street sold for a high price last year does not mean your home will sell for the same amount today. Market conditions can shift quickly, and what worked six or twelve months ago may no longer be effective.

We also take time to educate our Sellers so they fully understand the local market and what today’s buyers are looking for. Our goal is always to price your home in a way that maximizes interest, generates strong offers, and ultimately nets you the highest possible return—not just the highest list price.

Pricing Right from the Start

Here’s the bottom line: Pricing your home right the first time is one of the most important decisions you will make in the selling process.

When a home is priced correctly:

• It attracts more attention and showings in the first few weeks

• It stands out against competing listings

• It is more likely to receive strong, full-price offers

• It avoids the stigma of a stale listing

• It often sells faster, saving you money on holding costs like taxes, utilities, and insurance

On the other hand, pricing too high:

• Limits your pool of potential buyers

• Causes the home to sit on the market

• Leads to price reductions and lower final offers

• Can delay your plans to move or purchase another home

• Results in unnecessary frustration and missed opportunities

Let’s Get It Right Together

If you are thinking of selling your home in Bakersfield or anywhere in Kern County, it is important to work with a team that understands how to price effectively in today’s market. At The McCarty Group, we’ve helped over 11,000 local families sell their homes with confidence. We’ll guide you through every step of the process, starting with a strategic pricing consultation based on current market conditions—not outdated headlines.

Have questions or want to know what your home is really worth? We would love to connect. Call or text us at 661-665-SOLD.