In a stable real estate market like we have here in the Okanagan Shuswap right now, overpricing your home isn't just a small misstep. It's a strategy that can seriously backfire.

Today, I'm going to show you exactly how sellers lose money — sometimes tens and thousands of dollars — by pricing too high from day one. I'm Lisa Salt with RE/MAX Vernon and Salt Fowler, and I'll walk you through this graph step by step. It's called the cost of overpricing in a stable market. The whole purpose is to help you avoid the most common and costly mistakes we see in Vernon real estate right now.

1. Fair Market Value

Buyers decide what your home is worth. Not the seller, not even the agent. That’s called fair market value and it’s number one on this graph. Fair market value is driven by what buyers are actually willing to pay for your home based on similar homes in Vernon and the surrounding North Okanagan Shuswap area.

Fair market value is driven by what buyers will pay for perceived worth. This is your sweet spot: price your home here and you tap into real demand, fast offers, and stronger negotiating power.

2. The Seller’s Mistake — Listing Too High

Many sellers hope a higher initial price will draw a higher offer. They think, “Let's just try it here — we can always come down later. Nothing lost.” But the market doesn't wait and neither do buyers. Listing high is a common mistake.

3. The Golden Window

The first 14 to 21 days on the market are critical. Market interest is highest for new listings and then it wanes after two to four weeks. You never get a second chance to make a first impression — your home's honeymoon period is real. If your home is overpriced during this window, serious qualified buyers will move on to better-priced homes and you lose that initial momentum forever.

4. Stale Listing Psychology

As listings become stale, market psychology reduces the saleable price. The longer your home sits, the more buyers begin to wonder, “What's wrong with it? Why hasn't it sold?” Your home's perceived value starts to drop even if nothing about the house or market has changed. Over time, buyers feel emboldened to lowball offers.

5. Price Reductions — Reacting Instead of Strategizing

Eventually, price reductions become necessary to attract buyer attention. But by then you're reacting instead of strategically pricing. You may have to drop below market value just to get buyers back through the door because buyers already assume something is wrong.

6. The True Sale Price

After one, two or three reductions, you eventually hit the price buyers are willing to pay — the true sale price. But by that point you've wasted time, lost negotiating power, and missed your strongest window of interest (those first 7–21 days). You may have to accept less than you could have obtained with a correct initial price.

7. The Counterintuitive Truth

Counterintuitively, properties initially priced above fair market value tend to sell for less than they could have if they had been priced attractively from the start. Overpricing leads to under-offers — we see this repeatedly. This truly is a seller’s biggest mistake.

Why That Mistake Happens

Sometimes it isn’t even the seller’s fault — they may have listened to someone who didn’t know the facts, or who cared more about optimism than strategy. The worst-case scenario is listening to advice that isn’t grounded in daily market analysis.

Pricing Strategy — The Right Approach

If your goal is to sell (not just list), the smartest move is to price strategically, not emotionally. Detach from the emotional number. When you work with us at RE/MAX Vernon Salt Fowler, we don’t guess: we analyse the market daily, compare recent sales in your exact area, and present a pricing strategy designed to generate offers rather than force reductions weeks later.

Key reminder

Asking “what is my home worth?” is the wrong question. Instead, ask, “What will buyers actually pay for it?” Those are often two very different numbers — you must decide which number you want to hear.

Market Context

Right now in the Okanagan Shuswap, the market is stable. There is a lot of inventory and interest rates are higher than in previous years, so buyers have more to choose from. Sellers are competing against this week's price drops, not last year's sales.

Final Takeaway

Pricing your home right from day one isn't just a tactic — it's a strategy that can mean the difference between a smooth, profitable sale and months of stress and disappointment. Testing the market at an unrealistically high price simply doesn't work.

If you’re serious about selling in Vernon or the North Okanagan and want expert guidance backed by daily market analysis, we’re just a call, text, or email away. 

At RE/MAX Vernon Salt Fowler, we position your home where real buyers are already looking.

__________________________________

About the Author: The article above, This PRICING Mistake is COSTING Vernon Sellers Thousands (And You Won’t Hear It from Most Agents), was provided by Lisa Salt, an authority on Vernon BC and area real estate and a leader in the field of real estate blogging and vlogging.  Lisa and her group have helped literally helped thousands of families buy and sell homes since 1993. 

Looking to buy a home in the Vernon/North Okanagan area?  Check out "Everything You Need to Know About Buying a Home" article. It’s free of charge and will save you a ton of time!

Looking to sell?  We use the latest technology to get our clients’ homes sold quickly and for as much money as possible.

We help people buy and sell real estate in the following Okanagan/Shuswap areas: Vernon, Armstrong, Enderby, Lake Country, Lumby, Westside and Salmon Arm/Shuswap.

Call or Text 250-549-7258 or email webinfo@saltfowler.com