Is my house overpriced? How buyers actually decide

Short answer, buyers decide if a house is overpriced by comparing it to everything else they have already seen, not by your asking price, CV, or expectations.

Once buyers have been through a handful of open homes, they develop a strong internal benchmark. By the time they walk through your property, they are not asking “Is this expensive?” They are asking, “Is this better or worse than the other options I could buy for similar money?”

Buyers compare your home against:

• Recent comparable sales, especially ones they missed out on

• Current listings they are actively considering

• Condition, layout, and presentation

• Street appeal and location feel

• Emotional response relative to price

This is why two homes with similar specs can perform very differently. Buyers do not buy data alone. They buy perceived value.

Overpricing does not usually trigger negotiation. It triggers disengagement. When buyers feel a home is overpriced, they often do not make a low offer. They simply move on to something

that feels easier and more realistic.

Correct pricing is not about underselling. It is about positioning your home where buyers feel confident engaging. That confidence leads to more enquiry, stronger feedback, and better negotiation leverage.

The right question for sellers is not “What price do I want?” but “What does my home compete with in the buyer’s mind right now?”

If you want to understand how this applies to your property or your buying position, I’m

happy to talk it through.

FAQs:

• How do buyers decide if a house is overpriced?

  By comparing it to similar homes they have already seen or missed out on, not by the asking price alone.

  
  

• Will buyers just make a lower offer if it’s overpriced?

  Often no. Many buyers disengage entirely rather than negotiate with a seller they perceive as unrealistic.

  
  

• Does overpricing hurt a sale?

  Yes. It reduces urgency, limits enquiry, and can cause a listing to stall.

  
  

• Is pricing lower always better?

  No. Pricing correctly means aligning with buyer perception, not chasing the lowest number.

  
  

• How quickly do buyers form opinions on value?

  Usually after viewing three to five comparable properties.