5 Signs a Home is Overpriced (And How to Spot It Before It’s Too Late)
If you’ve spent more than five minutes in the real estate world, you’ve probably seen it:
A nice-looking house hits the market... sits there... price gets slashed... then slashed again... and eventually sells for less than it probably would have if it had just been priced right in the first place.
It happens all the time here in Montgomery County, The Woodlands, Conroe, and everywhere in between. Overpricing a home can cost sellers time, money, and leverage—and trust me, none of those are things you want to lose.
So how do you spot an overpriced home before the market does it for you?
Here are five big red flags you should watch out for:
1. Long Days on Market (DOM)
If a property’s been sitting for 30, 60, 90 days or more, that’s usually a sign buyers have taken a hard pass at the asking price.
Pro tip:
In a healthy market, homes priced right should go under contract fairly quickly—especially if they're clean and in good locations.
If it’s been on the market since your last birthday, it’s probably not priced right.
2. No Showings or Offers
Real estate isn’t complicated: if a home is priced right, buyers show up.
No showings = no real interest = something’s off.
When homes are listed above where the market says they should be, buyers won’t even bother scheduling a look. Worse, even if they do see it, they walk away without making an offer.
The market speaks pretty loudly. Sellers just have to listen.
3. Constant Price Reductions
You ever watch a listing slowly bleed out in the MLS? First a $10,000 price drop. Then another. Then a "motivated seller" note shows up.
It’s like watching someone try to put out a fire with a garden hose.
Multiple price cuts usually mean the home was priced too aggressively at the start. And here's the kicker: repeated drops actually hurt market perception. Buyers start wondering, "What’s wrong with it?" even if there’s nothing wrong at all.
4. Higher Than Neighboring Comps
If your neighbor’s house, which is almost identical to yours, just sold for $400,000... and you list yours at $450,000... you better have a gold-plated kitchen and a backyard with a lazy river to justify it.
Buyers today are savvy. They (and their agents) are looking at comps just like an appraiser would. If your list price doesn't line up with recent sales, you’re gonna hear crickets.
5. Seller Overconfidence in Upgrades
This one happens all the time.
Sellers fall in love with their upgrades—custom paint colors, a fancy chandelier from 1997, or a kitchen remodel that, while nice, might not have the impact they think it does.
Sometimes, even the listing agent knows the home is priced high, but their hands are tied because the seller insists it’s worth more.
(Spoiler alert: Upgrades rarely bring dollar-for-dollar returns.)
Buyers aren’t paying extra for emotional attachment. They’re paying based on what the market says it’s worth today.
Homes that start overpriced almost always sell for less than homes priced correctly from the beginning. First impressions matter—especially in real estate.
The longer a home sits, the bigger the discount buyers expect to take.
If you want to avoid the “death spiral” of overpricing, one of the smartest moves you can make is getting a professional, third-party appraisal upfront.
An unbiased appraisal gives both the seller and the agent an accurate, realistic value they can trust—without the emotions and guesswork.
Need help pricing it right from the start?
Visit LakeConroeAppraisals.com to schedule your pre-listing appraisal today.
You'll thank yourself later.
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