If you’ve been watching the headlines, you’ve probably seen phrases like “record high inventory,” “days on market continue to climb,” and “sellers competing again.”
Yet, many Arizona home sellers still think:
“Why not start high? I only need one buyer.”
But here’s the truth that most sellers don’t hear:
Overpricing is one of the most expensive mistakes you can make — even in a strong market.
And in many cases, you’ll walk away with less than if you had priced correctly from day one.
As an Arizona listing broker who tracks micro-market data daily, I see the same pattern over and over. Today, let’s break down the real, often invisible costs of overpricing — and how to avoid them.
1. You Attract the Wrong Buyers (and Lose the Right Ones)
Buyers shop by comparison.
If your home is priced 10–15% above competing listings, buyers immediately think:
- “Something’s wrong with it.”
- “The seller won’t be reasonable.”
- “I can get better value elsewhere.”
Meanwhile, buyers who would love your home never even see it, because:
✔ Their agent filters it out
✔ Their loan approval maxes out below your price
✔ Their search criteria excludes over-market listings
You don’t lose one buyer — you lose an entire category of buyers.
2. Your Days on Market Skyrocket (And Buyers Notice)
In Arizona, DOM is a weapon for buyers.
Here’s what today’s buyer thinks:
“If this home has been sitting more than 30–45 days, something’s wrong — let’s go in low.”
Even if nothing is wrong with the home, long DOM translates to:
- Lower offers
- Fewer showings
- Reduced buyer urgency
- Agents using your listing as an example of overpricing
Per ARMLS data:
Homes that require two or more price cuts sell for 6–11% BELOW final list price on average.
That’s the opposite of what overpricing sellers intend.
3. Your Appraisal Becomes a Time Bomb
Even if a buyer steps up, their lender still needs an appraisal.
And appraisers — especially in Maricopa County — are conservative right now.
If your home doesn’t appraise:
- The buyer walks
- You reduce the price anyway
- Or you meet in the middle
So even when you “win,” you often lose.
4. You May Still Sell… But Not Before Losing Thousands in Holding Costs
Every extra month on market = real money.
Especially if you’re carrying:
- Mortgage
- Utilities
- HOA
- Pool maintenance
- Landscaping
- Insurance
- Opportunity cost of capital
For many Arizona sellers, this ranges $1,800–$4,000/month in carrying costs.
Three months of overpricing?
That’s $5,000–$12,000 burned — not counting the reduced sale price.
5. Discounted Buyers Smell Blood in the Water
Once you start dropping the price:
🔥 You lose negotiating power
🔥 You attract bargain hunters
🔥 Offers become more aggressive
🔥 The listing becomes “stale”
Buyers track price cuts.
If you drop more than once, the psychology changes from:
➡️ “Let’s act fast!”
to
➡️ “They’re desperate — let’s wait for another drop.”
6. The Smart Strategy: Price Ahead of the Market, Not Behind It
A truly strategic pricing plan includes:
- Reviewing real-time micro-neighborhood data
- Analyzing absorption rates
- Studying active, pending, and withdrawn listings
- Understanding buyer psychology
- Monitoring weekly showing activity across comp sets
- Considering your timeline and risk tolerance
Pricing correctly doesn’t mean pricing low.
It means pricing in the range that creates momentum from buyers — the momentum that produces multiple offers and drives your net higher, not lower.
The Bottom Line: Overpricing Is More Expensive Than Underpricing
Underpricing risks leaving a little on the table.
Overpricing risks tens of thousands.
If you’re thinking about selling and want:
✔ A data-backed pricing plan
✔ A no-pressure consultation
✔ A full market analysis custom to your property
I’m here to help.
DTD Realty — Do The Deal.
Driven. Trusted. Dependable.
📞 602.702.3601
🌐 https://www.dtdrealty.com
📩 [email protected]
