A costly mistake is tripping up home sellers in 2026—and it starts on day one

The average single-family home sold for nearly 1% below its final listing price in March, signaling a shift in the housing market towards buyers, according to a Realtor.com report released this week. Joel Berner, senior economist at Realtor.com, stated that sellers can no longer price aggressively and expect to receive offers above asking, as overpricing now carries significant consequences and buyers hold more leverage. Berner emphasized the importance of setting the correct listing price from the outset, noting that the four-week mark is critical for entertaining offers or adjusting the price. Homes that went into contract within the first two weeks of listing sold for higher prices than the monthly average, while those that remained on the market for 18 weeks sold for 1.3 percentage points below the average. Berner further explained that overpriced homes not only sit on the market but also lose leverage and ultimately sell for less than they would have if initially priced correctly. The market for condos and townhomes is particularly soft, with listing prices falling 6% since 2022 and the average condo selling for 2.1% below its final listing price.