Home sellers, when looking towards the future, may harbor unrealistic expectations based on past experiences, as revealed by past home sellers.
Selling a home can be a complex and emotional process, often leading to unrealistic expectations among sellers. In a recent survey by Clever Offers, it was found that these misconceptions can significantly impact the actual selling process.
Influences on Unrealistic Expectations
- Lack of Market Knowledge: Sellers often overestimate the value of their property due to a lack of understanding of the current market conditions. Without up-to-date information on comparable sales and market trends, they may set prices that are not supported by the market reality.
- Emotional Attachment: Sellers may overvalue their homes due to emotional ties, which can lead to unrealistic pricing. This emotional attachment can make it difficult for sellers to accept lower offers or to price their homes competitively.
- Misinformation from Media and Social Networks: Exposure to media and social media showcasing high-priced homes can create unrealistic expectations. Sellers may believe their property is worth more than it actually is based on these portrayals.
- Real Estate Agent Influence: In some cases, real estate agents may indirectly encourage unrealistic expectations by suggesting high listing prices to secure a client's business, even if the price is not justified by market conditions.
Impact on the Selling Process
- Prolonged Listing Period: Homes priced unrealistically high often remain on the market longer. This can lead to a decrease in the perceived value of the property by potential buyers, who may infer that something is wrong with the house if it doesn't sell quickly.
- Lowered Offer Prices: Potential buyers may be deterred by high prices, leading to fewer offers or lower offers than expected. Eventually, the seller may have to reduce the price, which can be a disadvantageous position to negotiate from.
- Increased Costs: Maintaining a home on the market for an extended period can result in increased costs for the seller, such as mortgage payments, property taxes, and ongoing maintenance expenses.
- Stress and Disappointment: Unrealistic expectations can lead to stress and disappointment for sellers when they do not receive the desired price for their home. This can complicate the entire selling process and lead to a negative sales experience.
It's important to note that the U.S. currently has approximately 1.9 million homes for sale, but only 1.5 million active homebuyers, a shift that is likely to lead to price drops. In the past year, 27% of sellers found the home-selling process to be less stressful than they anticipated.
To navigate this process successfully, experts advise leaning on data, not emotions, when pricing and selling a home. Being sentimental about pricing a home can cause it to sit on the market for months. Touring other for-sale properties can help sellers understand the competition.
Despite the optimism of future sellers, only 42% of recent sellers noted receiving offers above their asking price. In the first half of 2025, only about 28% of homes sold above the asking price. Only 31% of recent sellers made seller concessions, indicating that buyers are less willing to negotiate in today's market.
94% of future sellers worry they'll make mistakes in the upcoming home sale. Cash-buyer companies may not be the only option for sellers who want to sell their property as-is. Many unrealistic expectations about the selling process are influenced by reality TV shows and social media.
In May, homes spent a median of 51 days on the market, emphasising the importance of pricing a home competitively to attract potential buyers and secure a quick sale.
- Homeowners might base their property's value on decor and lifestyle improvements they've made, but these upgrades may not translate to increased real-estate value without proper market knowledge.
- A home-and-garden makeover or a high-end kitchen renovation could enhance one's lifestyle but might not contribute significantly to the actual selling price if the seller has unrealistic expectations based on the local real-estate market.
- In the same vein, investing in a beautiful garden or trendy home decor could boost one's personal satisfaction, but it might not be a sound investment if the seller sets an unrealistic asking price, given the current market conditions and buyer preferences.
