Pricing a home is both an art and a science, but one truth remains when pricing a home: time is money. Sellers who aim too high often find themselves trapped in a costly cycle. They watch their home linger on the market, only to sell for less than if they had priced it correctly.
The Pricing Trap
It’s tempting to believe that starting high leaves room for negotiation, but the data proves otherwise. Overpriced homes don’t just take longer to sell—they ultimately sell for less.
Why? Because the best-qualified buyers—those actively searching and ready to purchase—dismiss overpriced homes at first glance. Meanwhile, as the days tick by, the property appears stale, leading future buyers to wonder: Why hasn’t this sold yet?
The Numbers Don’t Lie
Our 2024 analysis of the Kailua-Kona single-family home market reveals a striking trend:
- Homes that sell within 45 days command close to their asking price, with a median discount of 0.00% and an average discount of just 0.99%.
- Homes on the market for more than 45 days experience an average price cut of 8.57%, with a median discount of 8.22%.
- Every additional day a home remains unsold increases the expected discount by 0.078%.
- The median days on market (DOM) in 2024 was 22 days, while the average DOM was 56 days.
The takeaway? If a home sits on the market for 100 days, the projected price reduction climbs to 7.8%—a significant financial hit for sellers who hoped to “test the market” with a high list price. Overpricing doesn’t lead to higher offers. It leads to deeper discounts.
The Takeaway: Price Smart, Sell Strong
The best strategy isn’t pricing optimistically—it’s pricing strategically. The longer a home sits, the more money a seller ultimately loses.
In Kailua-Kona’s competitive market, pricing isn’t just a number. Price your home correctly from the start, and you maximize value. Overprice it, and you risk losing both time and equity.
Curious about your home’s market value? if you want to learn more about how to price your home and maximize its value, let’s talk.