One of the most common conversations I'm having with homeowners this summer isn't about mortgage rates, inventory, or even timing.
It's about price.
More specifically, it's about the temptation to "test the market."
I understand the thinking. If homes have appreciated over the last several years, why not start high and see what happens? After all, you can always lower the price later...right?
Unfortunately, that's one of the biggest misconceptions in today's market—and it can end up costing sellers far more than they realize.
This Week's Market Snapshot
- Inventory across Northern New Jersey continues to improve, giving buyers more choices than they've had in recent years.
- Well-priced homes are still generating strong interest and, in some cases, multiple offers.
- Buyers are spending more time comparing properties before making decisions.
- Price reductions are becoming more common, particularly on homes that entered the market too aggressively.
- First impressions matter more today than they have in several years.
Why Sellers Want to "Test the Market"
Most sellers aren't trying to be unrealistic.
They're simply trying to maximize their return.
Many remember hearing stories from 2021 and 2022, when homes routinely sold well above asking price after just a few days on the market. Others look at a neighbor's sale or an online estimate and assume their home should command an even higher price.
The logic seems reasonable:
"Let's list a little higher. If someone pays it, great. If not, we'll reduce the price later."
The problem is that today's buyers—and today's market—operate very differently.
Buyers Know More Than Ever
Today's buyers have access to more information than at any point in history.
Within seconds they can compare your home to similar properties, review recent sales, track price reductions, and receive instant notifications when new listings hit the market.
That means buyers know when a home is priced competitively—and they also know when it isn't.
Instead of creating excitement, an overpriced listing often causes buyers to simply move on to the next property.
Many won't even schedule a showing.
Your First Two Weeks Matter Most
The first days a property is on the market generate the highest level of attention.
Your listing appears as "new."
Agents notify their clients.
Buyers who have been waiting for the right home immediately take notice.
This is your window of maximum exposure.
When a property is priced correctly from the beginning, that initial excitement often leads to strong showing activity, competitive offers, and greater negotiating leverage.
When it's overpriced, something very different happens.
The excitement fades.
Days on market increase.
Buyers begin wondering:
"What's wrong with it?"
Even if nothing is wrong at all.
Price Reductions Can Send the Wrong Message
Many sellers believe a price reduction is simply part of the process.
Sometimes it is.
But repeated reductions can unintentionally change how buyers perceive the property.
Rather than thinking they're getting a great opportunity, buyers often assume the seller is becoming more motivated—or that there's an issue preventing the home from selling.
That perception can lead to lower offers than the seller might have received had the home been priced correctly from day one.
The Cost of Chasing the Market
In a changing market, waiting too long to adjust pricing can create another challenge.
If competing homes begin reducing their prices while your property sits, you may find yourself constantly trying to catch up.
Rather than leading the market, you're reacting to it.
In many cases, sellers who start too high ultimately sell for less than they likely would have if they had launched with a strategic, market-supported price.
What I'm Seeing Across Northern New Jersey
Throughout Hudson and Bergen Counties, I'm seeing a clear pattern.
Homes that are move-in ready, professionally marketed, and priced appropriately continue to attract meaningful buyer interest.
Meanwhile, homes that enter the market with aspirational pricing often experience slower showing activity and longer marketing times before adjustments are made.
The difference isn't always the property itself.
More often, it's the pricing strategy.
Pricing Isn't About Getting Less—It's About Creating Demand
One of the biggest misconceptions about pricing is that listing lower means settling for less.
In reality, strategic pricing is designed to create competition.
When multiple qualified buyers are interested in the same home, sellers often gain stronger negotiating leverage than they would with a single buyer months later.
Pricing should never be based solely on what a seller hopes to achieve.
It should reflect current market conditions, recent comparable sales, buyer demand, and the unique strengths of the property.
That's how momentum is created.
Farah's Take
The biggest mistake I see sellers make isn't overpricing by a large amount.
It's overpricing just enough to push qualified buyers to the next listing.
In today's market, buyers have options. They're willing to pay for value, but they're also doing their homework.
A thoughtful pricing strategy doesn't leave money on the table—it gives your home the best opportunity to generate interest, attract serious buyers, and achieve the strongest possible outcome.
What I'm Watching
As we move further into the summer, I'll be paying close attention to:
- Whether inventory continues to rise after the July holiday.
- The number of price reductions across Hudson and Bergen Counties.
- Buyer activity as mortgage rates fluctuate.
- Whether well-priced homes continue to outperform the broader market.
The Bottom Line
The goal isn't to "test the market."
The goal is to position your home so the market responds.
A well-priced home creates urgency.
An overpriced home often creates hesitation.
If you're thinking about selling this summer, pricing may be the single most important decision you'll make—and having the right strategy from the start can make all the difference.
Farah Alli
Founding Partner, Story Residential at Compass
Serving Hudson County, Bergen County, and Northern New Jersey