Selling an Overpriced Property: How to Bounce Back and Attract Buyers

When it comes to selling a home, every property owner dreams of securing the best possible price. Unfortunately, one of the most common mistakes sellers make is setting the price too high. While it might seem like a good idea to “test the market,” overpricing can backfire, leaving a home stuck on the market for months, attracting little interest, and eventually forcing the seller to accept less than fair value.

The good news? Even if you’ve overpriced your property, all hope is not lost. By recognizing the signs early and making smart adjustments, you can relaunch your property and give it a second chance at selling for a competitive price.

Why is overpricing a property risky?

Today’s buyers are savvier than ever before. With online property portals, neighbourhood price trackers, and comparative market data at their fingertips, they quickly identify when a home is listed above its true market value.

An overpriced home can lead to:

• Longer time on the market – which signals to buyers that something is “wrong” with the property.

• Fewer enquiries and viewings – buyers skip listings they feel are unrealistic.

• Lowball offers – even interested buyers may assume you’re desperate and make very low offers.

• Reduced final sale price – ironically, many overpriced homes eventually sell for less than they would have if correctly priced from the start.

Signs that your home may be overpriced

How do you know if your asking price is deterring buyers? Some common red flags include:

• The listing price is well above similar homes currently for sale in your neighbourhood.

• Buyer interest is low, with few calls, emails, or show day visitors.

• After months of marketing, all offers received are below your asking price.

• Comparable properties in your area are selling quickly, while yours remains unsold.

If your property matches two or more of these signs, it’s time to reassess your selling strategy.

How to recover from overpricing

Even if your home has been sitting unsold for months, you can turn things around. Here are practical steps to relaunch your property and attract new interest.

1. Plan a fresh start

A stale listing can be a major obstacle. Buyers often assume that if a property has been on the market for a long time, it must have hidden issues. To reset perceptions:

• Take your current listing down temporarily.

• Refresh the property with small but impactful upgrades: a coat of paint, garden clean-up, and decluttering. For a more in-depth look at how to stage your home, read our guide - not only will your home be photo-ready, it will be show-day ready.

• Hire a professional photographer to capture new images. Homes photographed in good light, with clean spaces and inviting exteriors, perform far better online.

If your first listing launched during a less flattering season (for example, when the garden was bare or the lighting was poor), fresh photos can completely change buyer impressions.

2. Reassess your listing price with professional guidance

The second attempt at pricing needs to be accurate. A common mistake is relaunching at the same inflated price, which only repeats the cycle. Instead:

• Request updated valuations from at least two or three experienced estate agents who are active in your area.

• Ask for a Comparative Market Analysis (CMA), which compares your property against recently sold homes of similar size, location, and condition.

• Avoid relying on “gut feel” or what you hope the home is worth — focus on data and current buyer demand.

By setting a realistic asking price, you not only attract more buyers but may even spark competitive offers. As a seller you also need to understand the marketability-value equation of your property. Read our guide on this crucial concept here.

3. Work with a local market expert

Not all agents are equally skilled. If you overpriced your home due to poor advice, it’s time to reconsider who represents you. A strong real estate agent should:

• Have a proven track record of selling homes in your area.

• Be transparent about pricing and back up their advice with market data.

• Provide a comprehensive marketing strategy, not just a simple online listing.

• Offer professional photos, virtual tours, and active buyer outreach.

Choosing the right partner can make the difference between another failed attempt and a successful sale.  We explore real estate commissions and how to choose the right agent for you in our guide. 

4. Build buyer confidence through transparency

When a property re-enters the market at a lower price, buyers sometimes wonder whether defects or hidden issues caused the drop. The best way to counter these doubts is with full transparency:

• Provide approved building plans and compliance certificates.

• Prepare a defect disclosure list with the help of your agent.

• Consider commissioning a professional home inspection report. You can find out more about the importance of home inspections here.

Being proactive reassures buyers that the price reduction was about market alignment, not hidden problems. Sellers who are open and forthcoming are often perceived as more trustworthy, which helps in negotiations.

5. Enhance your property’s presentation

First impressions matter. Beyond pricing, buyers want a home that looks inviting and well-cared for. Affordable improvements can make a big difference:

• Curb appeal: Trim lawns, refresh landscaping, and ensure the entrance is neat.

• Interiors: Remove clutter, neutralize décor, and highlight natural light.

• Minor upgrades: Fix dripping taps, replace outdated light fittings, and touch up scuffed walls.

These small investments often translate into higher buyer interest and faster offers.

Selling a property is often one of the biggest financial decisions homeowners make. While setting a high asking price might feel tempting, it’s important to remember that buyers shop with knowledge and caution. A well-priced, well-presented home not only attracts more attention but can also generate stronger offers.

If your home has been overpriced, don’t lose hope. With the right adjustments, you can reposition your property and achieve a fair market sale — sometimes even faster than expected.