Properties listed above market value are creating a new class of distressed sellers who end up accepting lower offers than they could have received with competitive initial pricing, according to Patrick Gorman, team leader at the Gorman Group Realtors at Keller Williams Main Street. This marks a clear shift in pricing strategy, as the traditional practice of leaving room for negotiation is now working against sellers in markets where buyers have regained leverage.
“The old school mentality of leaving room for negotiation is dead,” Gorman says. “You’re much better off pricing it aggressively, pricing it correctly, and taking it from there, as opposed to overpricing it.”
Gorman describes a pricing paradox in which identical properties yield different outcomes based solely on list price. Consider two neighboring homes with a true market value of $225,000 — one listed at $215,000 and the other at $250,000. The outcomes would be dramatically different.
The home priced at $215,000 is likely to attract offers above asking, possibly reaching $235,000. The one listed at $250,000 may not sell at all. Gorman attributes this to buyer behavior in markets with sufficient inventory: buyers bypass overpriced listings and focus on properties they perceive as good value.
Properties that remain unsold quickly develop a stigma. Once a listing sits on the market, buyers assume something is wrong and feel emboldened to submit lowball offers. “Once it’s starting to become a stigmatized property, people start thinking they’re smelling blood and start shooting in lowball offers,” he says.
This dynamic means sellers who refuse to price realistically often end up with less than those who price competitively from the start. In Gorman’s South Jersey market, properly priced homes generate multiple offers, allowing agents to negotiate upward. Overpriced homes linger on the market and eventually sell below their potential value.
Much of the pricing resistance Gorman encounters stems from seller expectations shaped during years of strong market conditions. Many sellers, particularly baby boomers, grew accustomed to a decade in which homes routinely sold above asking price with little preparation or negotiation required.
These sellers want maximum value without making repairs or concessions. They often cite news of a hot real estate market without recognizing that conditions have changed. “They want to sell their properties for max value, and they don’t want to do anything,” Gorman says.
Setting realistic expectations has become a critical part of the listing process. “It’s the realtor’s job to set realistic expectations up front,” Gorman says. Sellers who accept this guidance see better results. “The ones that listen, we’re still moving and grooving. The ones that don’t listen, they’re sitting and sitting and sitting.”
Today’s pricing dynamics reflect concrete changes in buyer behavior and inventory levels. Buyers in South Jersey are more selective, spending more time shopping and walking away from overpriced properties without hesitation.
South Jersey inventory has remained below three months since 2019, which still technically qualifies as a seller’s market. Even so, the extreme imbalance that once allowed sellers to dictate terms has ended. Sellers who overplay their hand no longer prevail as they once did.
Gorman’s strategy of listing at or just below market value aims to maximize sale price by attracting multiple qualified buyers. This approach creates the competition needed to drive prices upward, even in a more balanced market. Sellers who resist this approach face extended days on market, higher carrying costs, pressure to accept less favorable terms, and, in some cases, difficulty selling at any price that meets their financial goals.
The Gorman Group Realtors pairs aggressive pricing with professional marketing, investing $5,000 to $10,000 per month, according to Gorman, to promote listings. Gorman believes that as markets continue to normalize and buyers gain more leverage, this strategy will become even more important for achieving successful sales. For sellers, the takeaway is straightforward: today’s buyers have options and are quick to dismiss overpriced listings. Sellers who embrace realistic, competitive pricing supported by strong marketing are most likely to achieve the best results in the current market.
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