The race to the bottom is a trap for sellers, but smart pricing can help you stay ahead of the market.
If you’re thinking about selling your home, there’s one thing you need to know. The race to the bottom is real, and it’s hard to recover once you’re in it. In this shifting market, pricing your home too high can cost you much more than you think. I’ve seen it happen, and I’m here to help you avoid the same mistakes.
A personal story from my own experience. In 2003, I bought a home in Dale City for just under $215,000. In 2007, I listed it for $395,000. After about a month with no offers, I dropped the price to just under $380,000. I eventually sold it for $373,000 after offering around $12,000 in closing help. That sale was about $25,000 below my original asking price. I didn’t love it, but it was the right move. I got out before things took a turn.
The new owner wasn’t so lucky. A year later, they tried to sell the home for $185,000. There were no buyers. A few months later, they listed it at $250,000, but buyer interest still didn’t improve. They finally sold it for $215,000, which is a $150,000 drop from the original list price. That’s what the race to the bottom looks like.
“Chasing a higher number can backfire and lead to steep losses. ”
Why does this matter right now? The market is not the same as it was a year ago. Buyers are more cautious. Inventory is rising in many areas. Homes that are overpriced sit longer and lose value faster. Sellers who try to hold out for top dollar risk losing much more in the long run. The longer your home sits, the more you lose in both price and leverage.
Price to protect your equity. When I recommend pricing a home aggressively, it’s not to sell it for less. It’s to protect the equity you’ve built. Chasing a higher number can backfire and lead to steep losses. It’s better to act early than to chase the market down. I took the equity from that sale and reinvested in real estate when prices were lower. That one decision put me in a stronger financial position years later. You can do the same by making smart choices now.
If you’re thinking about selling, you can call or text me at (571) 210-1818 or email me at info@ajteamrealty.com. I’ll give you honest advice and personalized feedback to help you protect your investment and move forward with confidence.
