The Truth About House Prices: How to Avoid Overpricing or Underselling
Here’s what you need to know before pricing your home.
The Truth About House Prices: How to Avoid Overpricing or Underselling. Setting the right asking price is one of the most important decisions you'll make when selling your home. Price it too high, and you risk being overlooked by buyers. Too low, and you could end up leaving money on the table. Striking the right balance ensures a faster, smoother, and more profitable sale. Here’s what you need to know before pricing your home.
1. The Danger of Overpricing
It’s a common mistake: sellers assume they can start high and reduce the price later if needed. While this sounds safe in theory, it often ends up costing more in the long run.
✅ Why Overpricing Backfires:
- Fewer enquiries and viewings – Today’s buyers compare prices online. If your property is overpriced, many won’t even click on the listing.
- Extended time on the market – A home that sits unsold for weeks or months starts to raise red flags for buyers.
- Forced price reductions – After limited interest, sellers often reduce the price—and may end up settling for less than if they had priced it correctly from the beginning.
2. The Risk of Underselling
While overpricing can be damaging, underpricing carries its own risks. Some sellers intentionally list low to generate interest or spark a bidding war. But that doesn’t always go to plan.
✅ How to Avoid Underselling:
- Know your property’s true market value – Avoid relying on generic online estimates.
- Use real-time buyer insights – At Martyn Russell, we utilise our AI-powered Heads Up Alerts to test pricing and gauge interest before launching on Rightmove.
- Assess demand – In a strong seller’s market, you may be able to list higher without putting buyers off.
3. How to Price Your Home Correctly
Finding the sweet spot between overpricing and underselling requires a blend of local knowledge, recent data, and strategic insight.
✅ What Works:
- Analyse recent sales – Look at similar homes in your area that have recently sold.
- Understand local demand – Are properties in your neighbourhood selling quickly, or sitting for weeks?
- Use pre-market testing – Our Buyer Registration System allows us to test your pricing strategy with real buyers before your listing goes live.
4. The Role of Estate Agents in Pricing
Not all estate agents are created equal when it comes to pricing. Some may overinflate valuations to win your instruction—only to recommend a price drop later when interest doesn’t materialise.
✅ At Martyn Russell, we:
- Use real-time market data, not just generic online valuation tools
- Offer transparent, honest advice based on actual buyer behaviour and market conditions
- Focus on creating competition among buyers to maximise your final sale price
Get Your Pricing Right from Day One
A well-priced home attracts the right buyers, sells faster, and reduces stress throughout the process. If you’re thinking of selling and want expert guidance on setting the ideal price, we’re here to help.
Let’s have a chat and ensure you get your pricing—and your sale—spot on from the start.
Frequently Asked Questions
1. What happens if I price my home too high?
Overpricing can lead to fewer viewings, a longer time on the market, and ultimately price reductions. Many buyers won’t even look at a listing they feel is overpriced, and stale listings can raise concerns that something is wrong with the property.
2. Is it risky to list at a lower price to attract interest?
It can be. While a lower price might generate more attention, it doesn’t always result in multiple offers. Without proper strategy and market insight, you could end up underselling. It’s important to understand your home’s true value and current demand before setting a price.
3. How do I know what my home is really worth?
Start by reviewing recent local sales of similar properties. At Martyn Russell, we also use pre-market tools like Heads Up Alerts and our Buyer Registration System to test pricing and gauge interest before launching your home publicly.
4. Can I trust all estate agents when it comes to pricing?
Not necessarily. Some agents may overvalue your home just to win the instruction, only to suggest a price drop later. Look for an agent who provides honest advice based on real market data and focuses on creating strong buyer demand from day one.