Why property owners overvalue their homes – and how it hurts them?

Every real estate agent knows the problem: sellers set unrealistic prices.
"My house is worth more than that!" – a phrase heard all too often.
But why? And more importantly, how do sellers end up hurting themselves by listing their property at an inflated price?

10 reasons why homeowners overprice their property

Emotional attachment – Their home is more than just a property; it’s filled with memories.
Comparing with the wrong references – "My neighbour sold for X!" without considering key differences.
Lack of market knowledge – They don’t realize the market fluctuates and not all prices are realistic.
Hoping for the perfect buyer – "Someone will eventually pay this price!"
Confusing investment with market value – "I spent €50,000 on renovations!" – that doesn’t mean the market will pay for it.
No urgency to sell – Without pressure, they try their luck with an inflated price.
Bad advice – Friends, family, and even some accountants give unrealistic opinions.
Betting on price increases – "The market will rise soon!" (Spoiler: it rarely does.)
Fear of undervaluing – The fear of "being ripped off" prevents them from setting a realistic price.
Testing the agent – Seeing if the agent inflates the estimate just to secure the listing.

10 Tactics sellers use to manipulate real estate agents

Here’s how some sellers convince agents to list their properties at inflated prices:

Biased sales comparisons – They provide misleading data about local sales.
"A friend told me that..." – Relying on unqualified "experts."
Hiding defects – The agent only discovers later that the roof leaks.
Exaggerating features – "Luxury location!" when it’s next to a highway.
Inflated valuations – Costly appraisals that don’t reflect real market value.
Pressuring the agent – "If you don’t list at this price, I’ll go elsewhere!"
Fake buyers – "I have a buyer ready to pay this price!" (Spoiler: they don’t exist.)
Offering a higher commission – "We’ll pay more if you sell at this price!"
Misleading statistics – "Look at how prices have risen over the last decade!" – ignoring current market conditions.
Emotional manipulation – "I can’t accept less; my whole life depends on this!"

The harsh consequences of overpricing

What happens next? Those who list at unrealistic prices lose more than they gain:

The property sits too long on the market – Buyers assume something is wrong.
The listing becomes "stale" – The longer it's online, the less attractive it becomes.
Serious buyers move on – They ignore overpriced listings.
Forced price reductions – After months without offers, sellers must slash their price.
Final selling price below market value – Buyers negotiate harder on old listings.
High holding costs – Mortgages, fees, and taxes continue to pile up.
Agent disinterest – Agents invest less in overpriced properties.
Delays in moving forward – If the seller wants to buy another home, everything gets delayed.
Harder negotiations – The buyer has the upper hand.
Seller’s reputation suffers – They are seen as "unrealistic."

The rue cost of overpricing

Studies show that overpriced properties end up selling for 5-10% below market value.
Sellers who think they are negotiating "from the top" actually lose money in the end.

Example:

Market value: €500,000
Initially listed at: €600,000 (too high)
Sold after 12 months for: €450,000 (instead of €500,000!)
Net loss: €50,000 – just because of poor pricing strategy.

Conclusion: Sell smart, not with wishful thinking

The solution?

A realistic starting price gets the best final price.
A good agent will explain why your asking price is unrealistic.
Every property has a true value – and it’s not negotiable.
Selling quickly is better than gambling on a dream price.

Don’t let ego or bad advice cost you thousands.
Those who understand the market sell faster and for more – without tricks or manipulation.

Have you experienced this? Share your thoughts below! 👇