<h2The Cost of Overpricing</h2<pEvery week your home sits unsold costs you money — in carrying costs like mortgage payments, taxes, and insurance, and in the psychological stigma of a stale listing.
Buyers and their agents track days on market closely.
A home that has been listed for 60 or 90 days without selling sends a signal that something is wrong, even if the only issue was the original asking price.
Acting decisively when the market signals your price is too high is one of the most important skills a FSBO seller can develop.</p<h2Warning Signs Your Price Is Too High</h2<pThe clearest signal is a lack of showings.
In a normal market, a competitively priced home should generate 5 to 10 showings in the first two weeks.
If you are getting fewer than 3 showings per week after the first two weeks on the market, your price is likely the barrier.
Other warning signs include multiple showings with no offers, consistent feedback from buyers that the home is "priced too high," and comparable homes in your neighborhood selling while yours sits.
Online metrics also tell a story — if your Zillow listing has thousands of views but few saves or inquiries, buyers are clicking away because of price.</p<h2How Much to Reduce</h2<pA price reduction needs to be meaningful enough to move your listing into a new buyer pool.
Reducing by $1,000 or $2,000 on a $300,000 home is unlikely to change buyer behavior — it will not show up in different search results and will not change the perception of value.
A meaningful reduction is typically 2 to 5 percent of your asking price.
On a $300,000 home, that means a reduction of $6,000 to $15,000.
If your home has been on the market for more than 60 days, consider a more aggressive reduction of 5 to 8 percent to generate urgency.</p<h2Timing Your Price Reduction</h2<pThe best time to reduce is before your listing becomes truly stale.
Most real estate professionals recommend reviewing your price after 14 days if you have had fewer than 5 showings, and again at 30 days if you have received no offers.
Do not wait 90 days to make your first reduction — by then, the listing has lost most of its momentum and a price cut alone may not be enough to revive interest.</p<h2How to Announce the Reduction</h2<pWhen you reduce your price, update your listing immediately on all platforms.
The MLS will flag your listing as a price reduction, which triggers notifications to buyers who have saved your home or set up search alerts.
This is a free marketing boost — use it strategically.
Consider pairing your price reduction with fresh photos, an updated description, or a new open house to maximize the renewed attention.</p<h2Alternatives to a Price Reduction</h2<pIf you are reluctant to reduce your price, consider other ways to add value for buyers.
Offering to pay a portion of closing costs (typically 1 to 3 percent of the purchase price) can be as attractive as a price reduction while preserving your list price.
Including appliances, a home warranty, or a furniture allowance can also differentiate your listing.
However, if your home is genuinely overpriced relative to the market, these concessions will not fully compensate — a price reduction is ultimately the most effective tool.</p