“Let’s price it high. We can always negotiate.”
It’s one of the most common things sellers say when preparing to put their home on the market.
On the surface, it sounds like a sensible strategy. Start high, leave room to negotiate, and see what happens.
But in today’s digital real estate market, that approach often does more harm than good.
For this edition of Real Estate with Brenda K, I invited longtime colleague and friend Sandra Chaisson of Royal LePage Atlantic to join me for a conversation about one of the biggest misconceptions in real estate: that overpricing a home gives a seller more negotiating power.
We discussed how buyers determine value, why pricing strategies have changed over the years, and why the listing price isn’t what determines a home’s market value.
The true market value is ultimately established by what a qualified buyer is willing to pay and what a seller is willing to accept.
The Listing Price Is a Marketing Decision
Many homeowners naturally view their property through an emotional lens.
It may be the home where they raised their children, celebrated holidays, completed renovations, planted gardens, or created years of memories. Those experiences are meaningful, but they don’t always translate into additional market value.
Sandra refers to this as the “vanity price.” I often call it the emotional value.
It is the number a seller feels their home should be worth based on their personal attachment, the money they have invested, or the amount they hope to receive.
The listing price, however, needs to be based on more than hope.
It should reflect recent comparable sales, the home’s location, size, condition, features, current competition, and the direction of the market. It also needs to place the property in front of the right group of buyers.
A well-researched listing price is not about giving a home away. It is about positioning the property to attract the strongest possible interest from the market.
Comparable Sales Need to Be Interpreted
Today’s buyers and sellers have access to more real estate information than ever before.
They can view listing histories, recent sales, property details, photographs, neighbourhood information, and estimated values online. Having access to data can be helpful, but seeing the numbers is not the same as understanding the story behind them.
During our conversation, Sandra shared an example from her own neighbourhood. A nearby property had sold for an unusually high price, making it very tempting to use that sale as evidence of what surrounding homes might be worth.
After looking more closely, she discovered that the neighbouring property owner had purchased the home to control what happened beside them. Their motivation was very different from that of a typical buyer, and they were willing to pay a premium for reasons that may never apply to another sale.
Without knowing that backstory, the transaction could easily be misinterpreted.
That is why comparable sales require more than matching the number of bedrooms, bathrooms, and square footage. An experienced REALTOR® also looks at condition, updates, lot characteristics, location, layout, special circumstances, and buyer motivation.
The numbers are important, but so is knowing what created them.
Renovations Don’t Always Add Dollar for Dollar
Another common misconception is that every dollar spent on a home should be added to its selling price.
Unfortunately, real estate doesn’t work that way.
A homeowner may spend thousands of dollars on landscaping, solar panels, insulation, specialty finishes, or highly personalized upgrades. Those improvements may make the home more enjoyable and may help it appeal to certain buyers, but they won’t necessarily produce an equal return when the property is sold.
Value depends on how buyers respond to the improvement.
A beautifully landscaped garden may be a major selling feature to someone who loves gardening. To another buyer, it may feel like a great deal of maintenance.
Solar panels may appeal to a buyer interested in energy efficiency, but their value may depend on whether they are owned outright, financed, leased, or transferable.
A renovated kitchen often creates strong emotional appeal, but even then, the return depends on the quality, style, age, and expectations of buyers in that particular price range.
Sometimes an improvement adds measurable value. Sometimes it makes the home more desirable. Sometimes it simply reflects a personal choice the homeowner enjoyed while living there.
Those are not always the same thing.
Overpricing Can Put Your Home in the Wrong Market
Every price range has its own pool of buyers.
A buyer approved to spend up to $500,000 will usually search within a defined range. If a home is worth approximately $500,000 but is listed at $550,000, many of the buyers who are best suited to purchase it may never see it.
At the same time, the buyers shopping around $550,000 will compare it to homes that genuinely belong in that price range. Those properties may have more space, better finishes, larger lots, more desirable locations, or additional features.
Instead of making the overpriced home look more valuable, the strategy can make competing homes look like better deals.
In other words, overpricing your property may help sell the house down the street.
Buyers don’t look at a home in isolation. They compare it to every other option available within their budget. When a property is placed in the wrong price category, it can struggle to compete from the very beginning.
You Can’t Negotiate From an Unrealistic Number
Sellers sometimes believe that a high price leaves room to negotiate.
But buyers don’t usually begin with the seller’s hopes. They begin with their own assessment of the property’s value.
If the listing price is significantly higher than what recent sales and current competition support, buyers may not submit a lower offer. They may simply move on.
This is particularly true in today’s digital real estate market. Buyers receive alerts as soon as new listings appear, monitor price changes, compare properties online, and often recognize quickly when a home is priced outside the market.
An unrealistic asking price doesn’t necessarily create a higher starting point for negotiation.
Sometimes it prevents the negotiation from beginning at all.
The First Few Weeks Matter
A new listing receives its greatest amount of attention when it first enters the market.
Buyers who have been actively searching will see it immediately. Their agents will review it, online alerts will be triggered, and the property may be added to showing lists.
That initial attention is valuable.
When a home is priced correctly, the early exposure can create showings, interest, conversations, and offers.
When it is overpriced, buyers may dismiss it and move on. By the time the price is reduced, the listing is no longer new. Some buyers may wonder why it hasn’t sold, while others may have already purchased another property.
Price adjustments are sometimes necessary, and there is nothing wrong with responding to market feedback. The problem arises when a home begins so far above the market that it loses valuable time and momentum.
Pricing Is Both Math and Strategy
Determining a listing price involves a great deal of analysis.
We compare similar homes, adjust for differences in finished living space, age, condition, renovations, heating systems, garages, views, secondary suites, lot characteristics, and other features that may influence buyer demand.
But pricing is not based on a formula alone.
Presentation matters. Location matters. Buyer psychology matters. Current competition matters. Timing matters.
There are occasions when a particularly attractive, well-maintained home may justify testing the upper end of a reasonable range. A home with exceptional presentation can create an emotional response that encourages buyers to pay more.
That is very different from choosing a price that is $100,000 or $200,000 above what the market supports.
There is room for strategy, but the strategy still needs to be grounded in reality.
Your Motivation Matters
One of the most important things a seller can share with their REALTOR® is their motivation.
Are you relocating for work? Downsizing? Building another home? Managing financial pressure? Hoping to sell before a particular date? Testing the market without a firm plan to move?
Those details affect the pricing and marketing strategy.
Your Realtor® cannot provide the best advice without understanding what you need the sale to accomplish.
That doesn’t mean you must accept a price you are uncomfortable with. It means you and your REALTOR® can work together to create a plan that reflects both the market and your personal goals.
Selling a home should be a partnership. Honest communication makes it much easier to make thoughtful decisions when feedback, offers, or price adjustments need to be discussed.
The Biggest Takeaway
If there was one message that stood out throughout our conversation, it was this: Pricing high does not automatically result in selling high.
The listing price should attract the right buyers, place the property in the correct competitive range, and create an opportunity for the market to respond.
Price correctly and buyers are more likely to show up.
Price too far above the market and everything can go quiet.
The goal isn’t simply to list a home. The goal is to sell it for the highest price the market will support, within a timeframe and strategy that work for the seller.
In the end, the market always tells the truth.
Watch the Full Episode
To hear our full conversation about listing prices, emotional value, comparable sales, renovations, buyer search ranges, and the risks of overpricing, watch the latest episode of Real Estate with Brenda K.
You can also listen to Real Estate with Brenda K on Spotify, Apple Podcasts, and wherever you enjoy your favourite podcasts.
Thinking About Selling Your Home?
Choosing the right listing price is one of the most important decisions you’ll make when preparing to sell.
If you’re thinking about selling a home in Halifax, Dartmouth, or the surrounding communities, our team would be happy to help you understand the current market, review the comparable sales, and create a pricing strategy designed to achieve the best possible result.
And remember, when you’re thinking real estate in Halifax, think Brenda K