Selling a home in Austin, Dripping Springs, or the greater Hill Country isn’t the Wild West it was a few years ago. Today’s buyers are informed, analytical, and quick to walk away if a home feels overpriced. Many sellers believe they should “test the market” with an aspirational price just to see if someone might bite. Unfortunately, that strategy backfires more often than it succeeds—and the data consistently proves it.
Why Overpricing Your Austin Home Can Cost You Thousands
Alexia Dauterive, Realtor®, Realty Austin I COMPASS
The graph above tells the story. When a home hits the market overpriced, the blue line shows it sitting…and sitting…until the inevitable price reductions begin. Meanwhile, the red curve—buyer perception of value—slowly declines. Buyers start wondering what’s wrong with the property. They assume other buyers passed for a reason. Momentum vanishes.
And that’s how sellers accidentally leave money on the table.
Days on Market Sends a Message—And Not a Good One
In Austin real estate, every extra day on the market eats away at a home’s value. Buyers track DOM (days on market) like hawks. When they see a home sitting longer than the neighborhood average, they immediately assume the price is inflated or the home has hidden issues.
Even if your home is beautiful, well-maintained, and move-in ready, the longer it lingers, the more buyers mentally discount it.
Time on market = money lost.
The “Test the Market” Approach Works Against You
A lot of sellers think: "Let’s start high. We can always reduce later.”
The graph shows exactly what happens:
• You start above fair market value.
• You get low traffic, low interest, and no offers.
• You’re forced to reduce—again and again.
• Buyers’ perception of value declines faster than your price drops.
By the time you reach the price you should have started at, buyers think they have leverage, and they push even lower. Homes that chase the market downward often end up selling below where they could have sold if priced correctly from day one.
The Goal Isn’t “High”—It’s “Right”
Pricing at fair market value isn’t giving anything away. It’s smart strategy.
Proper pricing:
• Generates strong early interest • Maxes out showing activity in the critical first two weeks • Increases the odds of multiple offers • Protects your final sales price • Shortens days on market (which boosts your negotiating power)
Most importantly, fair pricing helps you keep buyers anchored to the true value of your home—not a discounted version created by multiple price drops.
Buyers Reward Realistic Pricing
In today’s Austin market, price-sensitive buyers are comparing homes across multiple neighborhoods. When your home is priced correctly, it stands out for the right reasons. And when you have momentum in the first 10–14 days, that’s when you get your strongest offers.
Momentum creates money. Stagnation creates discounts.
Bottom Line
Overpricing isn’t a harmless experiment. It’s a strategy that delays your sale, lowers buyer confidence, and—ironically—reduces your final sales price. Starting at a fair and strategic price keeps you in control, protects your equity, and positions your home to sell quickly and for the highest possible value.
If you're thinking about selling in Austin, Dripping Springs, or the Hill Country, I’m here to help you price with precision, stage effectively, and hit the market strong from day one.
When you price right, you don’t just sell—you win.
Alexia is a long-standing member of DS Elite and currently serves as Treasurer on the Board of Directors.
