Why overpricing is the most expensive mistake sellers make

Last updated 25 October 2026

Most sellers don’t have a pricing problem. They have an expectations problem. Pricing above what buyers will pay doesn’t get you a higher price. It gets you a longer wait and, usually, a lower price.

What the data says

Lightstone analysed 2024 sales and found that the longer a home is listed, the bigger the gap between the listing price and the price paid. The discount was around 6% for sales within a month and more than 20% after two years. Homes under R1.5 million were discounted by 8% to 10% on average. Of the metros, Cape Town purchase prices were closest to asking prices.

Why overpricing costs you money

• Fewer viewings. Buyers compare. If your place costs more than the one next door and looks the same, they pick next door.
• Time on the market counts against you. Buyers can see how long a home has been listed, and they negotiate accordingly.
• You pay while it sits. Bond, rates, levies and utilities don’t pause while you wait for an offer.
• The price drops anyway. A reduction after weeks of silence rarely wins back the time you lost.

How to price it properly

1. Look at what comparable homes sold for, not what they’re listed at. Asking prices are hopes. Sold prices are facts.
2. Ask any agent to show you the comparable sales behind their number. If they can’t, that’s your answer.
3. Be wary of the highest suggested asking price. A big number wins a mandate. It doesn’t win a buyer.
4. Agree a plan before you list. Decide what you’ll do if there are no offers after the first few weeks.

How I do it

I don’t inflate asking prices to win a mandate. In the free property consultation I tell you what the market will support, based on what comparable properties have sold for, and what you’d take home after costs. If the timing’s wrong, I’ll say so.

Read next: How to calculate your net proceeds before you sell.

General information only. It is not legal, tax or financial advice. Confirm figures with your conveyancing attorney, bank or accountant before you decide. See the Disclaimer.