Don’t Overprice a Property by Reading the Wrong Signals
The real estate market in 2025 has been labeled as “shifting” by many experts. Inventory continues to climb slightly each month and the key statistic of days on market is up about 10 percent for the year.
In addition, there are many more price reductions than a year ago showing on the MLS, and fewer homes are selling at more than asking price.
Is the Massachusetts real estate market shifting away from benefitting sellers and moving more in favor of buyers? The balance may not have tipped yet, but in times like this it’s critical for real estate professionals to examine pricing strategies and stay ahead of the shift.
Agents representing buyers and sellers must focus on strategic, data-driven approaches to pricing, along with market expertise, rather than relying on past performance.
Analyzing the Market Shift
The first step is a clear and honest assessment of the current market dynamics. Agents must look beyond simple comparable sales and understand broader trends.
Review metrics like average days on the market, total active listings versus closed sales, and rising or falling interest rates. These numbers tell the story of the market’s direction. Rising inventory and interest rates might signal a cooling market, while low inventory and quick sales suggest it’s very active.
Track the market: Look at active listings in your area. Pay attention to expired listings as well, which often indicate properties that were priced too high for the market.
And educate your clients. You should have access to the latest hyperlocal data and can interpret what the numbers mean for your client’s property. Your expertise is invaluable for navigating uncertainty.
Strategic Pricing Approaches
To counter the risks of overpricing, sellers can adopt several proactive strategies.
First, there’s competitive pricing. A seller sets their price slightly below the true market value to generate urgency and attract a larger pool of potential buyers. The goal is to ignite a bidding war that drives the final sale price up, sometimes even above initial expectations.
Then, there’s “psychological pricing,” where a seller utilizes pricing psychology to maximize visibility. Pricing a home just under a common search threshold (e.g., $499,000 instead of $505,000) can make it appear in more online searches and feel like a better deal.
Lastly, there’s premium pricing. This is used most effectively in a strong seller’s market or for a unique, high-end property. This involves pricing a home above market value to create a sense of exclusivity. This is a high-risk strategy that requires a market with low inventory and a property with demonstrable, superior value.
Proper Positioning
In a shifting market, pricing is not just about the number – it’s about positioning the property effectively to appeal to buyers.
If the home has unique selling points, such as recent renovations, smart home technology or a desirable location, feature these to justify a higher price.
Enhance marketability by investing in professional photography, virtual tours and staging to make the home stand out. First impressions are critical, and a polished listing can attract a better buyer pool.
In a buyer’s market, consider offering incentives to sweeten the deal. Paying for some closing costs or offering a home warranty can be attractive to price-sensitive buyers.
Monitor and Adjust
A pricing strategy isn’t fixed – continuous monitoring and swift adjustments are crucial for a successful sale.
If a listing isn’t generating showings or offers within the first few weeks, it’s a clear signal the price may be too high.
Pay close attention to feedback from potential buyers and their agents. If multiple parties cite price as a concern, reevaluate.
If a price reduction is needed, don’t wait – act decisively. Repositioning the listing with a fresh, competitive price can regain momentum and capture a new wave of buyers.
By embracing market realities, avoiding the temptation to overprice, and strategically positioning the property, agents can help sellers navigate the complexities of a shifting market and achieve their desired outcome.
Al Becker is the president and chief operating officer at residential brokerage Jack Conway in Hanover.
