If you’re considering selling your home in San Pedro or the South Bay, your goal is probably the same as every homeowner’s—to sell quickly and for the highest price the market will allow.
But the reality is many sellers still consistently overshoot on price, and it’s costing them. Here’s what’s happening: As more homes come on the market, buyers have more choices. Added inventory means pricing your home like it’s still 2021 or early 2022 is a mistake—and the side effect of that is showing up all over the place: price reductions are becoming more common. And honestly, they don’t have to be.
According to recent data from Realtor.com, the number of price reductions this past February was the highest for any February since 2019. Why does that matter? Because 2019 was the last “normal” year before the pandemic market boom, we’re finally returning to more balanced conditions.
Our local housing market is still strong—but it’s no longer the ultra-competitive frenzy we saw a few years ago. Your neighbor who sold at the height of the pandemic? Odds are they got a price that reflected extreme buyer demand, lower inventory, and historically low rates for buyers. Today, you must be mindful of the shift and adjust your expectations accordingly.
Why Overpricing Hurts Your Bottom Line
Here’s the truth: if you list too high right out of the gate and have to lower the price later, you could end up leaving money on the table. In fact, pricing your home properly from day one is the best way to ensure you get strong, serious offers.
A good agent doesn’t just guess at a number. We look at real data—sales of comparable homes in San Pedro and Rancho Palos Verdes—and pay close attention to the latest market trends. Sometimes, the smartest move is to price slightly below the “top dollar” number to create a buzz, draw more buyers, and encourage competitive offers. Here’s how we come up with that right number:
• We study recent actual sales (not list prices) of similar homes in your neighborhood.
• We track how buyers behave in the local market—what they’re actually paying, not what sellers hope for.
• We design a pricing strategy that gives your home the best chance to grab attention and generate real urgency from buyers.
Dangers of ‘Testing the Market’ with a High Price
Even with this advice, some sellers still want to “test the market” with a high price, hoping they’ll either get lucky or have room to negotiate. But that strategy often backfires:
• Buyers will pass you by. Today’s buyers are educated and budget-conscious. If your home is priced too high, most will move on without even scheduling a showing.
• It could sit on the market too long. The longer your house sits, the more buyers start to assume there’s something wrong with it—even if there isn’t.
• You may end up selling for less. Homes that need price cuts almost always end up selling for less than if they had been priced correctly from the start.
There’s a simple pattern here: Homes priced right, especially in the first few weeks, tend to sell for full price—or even above if buyers feel they’re competing. Once you miss that window, the clock starts working against you, and the longer your home sits, the more likely you’ll either have to settle for a lower offer or reduce your price.
Bottom line: Pricing your home competitively from day one, with guidance from an experienced local expert, can save you time, stress, and money—and help you get the best possible outcome in today’s evolving market. spt
