The Pitfalls of “Testing the Market” with Your Home Price

If you’re preparing to sell your home, one of the most critical decisions you’ll make is setting the right price. Many sellers are tempted to “test the market” by starting high, thinking they can always reduce the price later if necessary. While this may sound like a safe strategy, in reality, it can hurt your chances of selling quickly and for the best price.

Why Pricing Matters More Now Than Ever

The real estate market is shifting. Inventory has increased while buyer demand has begun to slow, making accurate pricing even more important. According to the Oklahoma City Metropolitan Association of Realtors, the current housing market has a 4.2-month supply of inventory, compared to just 2.5 months in January. While this figure represents an average across all homes, supply grows even higher as you move up in price ranges. This means that the higher your asking price, the more competition you’ll face and the longer your home could sit unsold.

Taking Emotion Out of the Equation

Sellers often overvalue their home because of emotional attachment or the improvements they’ve made. But buyers don’t measure value by sentimental factors—they compare your property against competing homes and recent sales. To succeed in today’s market, you need to take an objective, data-driven approach to pricing and remove emotions from the equation.

Buyers Are Savvier Than Ever

Today’s buyers are well-informed. With or without an agent, they spend hours researching comparable homes, watching price reductions, and tracking market trends. Most buyers and their agents can tell immediately if a home is overpriced. The result? Overpriced homes sit on the market, often leading to multiple price reductions that eventually dip below where the home would have sold had it been priced correctly from the start.

Missing Qualified Buyers

“Testing the market” can also cause you to miss qualified buyers entirely. For example, if your home should be listed between $575,000 and $600,000, but you decide to test the market at $625,000, you exclude every buyer whose budget caps at $600,000. By the time you adjust your price to reality, those buyers will have already moved on to other properties.

Why Now Is Not the Time to Test the Market

With demand softening and supply growing, sellers don’t have the luxury of “testing the market” anymore. Overpricing doesn’t just delay your sale—it reduces the pool of buyers who will even consider your home. The best strategy is to price correctly from the start, based on a realistic assessment of current conditions.  Doing so positions your property competitively, attracts more qualified buyers, and ultimately helps you achieve a stronger sale.

The David Oliver Real Estate Group will help you determine the right price by conducting thorough market research and creating a customized marketing plan designed to sell your home in today’s challenging market.

📌 Bottom Line: In today’s shifting market, “testing the market” by overpricing your home is more likely to cost you time, money, and missed opportunities. The smartest move is to price your home accurately from the beginning to capture serious buyers and sell with confidence.