Overpricing Your Property in the Middle Keys: Why Market Value Matters

As a top listing agent serving Duck Key, Marathon Key, and Key Colony Beach, I often hear the same question from sellers: “Shouldn’t I price my home a little higher to leave room for negotiation?” While it’s tempting to aim high, the reality is that overpricing your property is the most common mistake sellers make—and it can cost you both time and money.

The Pyramid of Buyer Interest

The graphic above perfectly illustrates the relationship between price and buyer visibility. Here’s what it shows:

• At Market Value: About 60% of potential buyers will consider your property.

• Above Market Value (+10% to +15%): Only 30% to 10% of buyers will look at your home.

• Below Market Value (-10% to -15%): You capture the attention of 75% to 90% of buyers

Has anyone shown you what your home's true value looks like in today’s market?

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What Happens When You Overprice?

Overpricing your home—setting a price above what comparable homes are selling for—often leads to these outcomes:

• Longer Days on Market: Overpriced homes tend to sit unsold, raising red flags for buyers who start to wonder what’s wrong with the property.

• Less Interest and Fewer Showings: Buyers can access extensive market data and skip homes that don’t match up with recent sales.

• Price Reductions and Stale Listings: Eventually, sellers are forced to lower the price, but by then, the listing has lost its momentum and appeal.

• Lower Final Sale Price: Homes that linger on the market often sell for less than if they had been priced correctly from the start.

“Rather than starting a negotiation, many buyers will move on to better-priced alternatives... It’s much better to start at the right price and create momentum than to overprice and end up chasing the market down.”

The Power of Pricing Below Market Value

On the flip side, pricing your home slightly below market value can create what I call the “auction effect”:

• More Buyer Interest: A lower price attracts more buyers, making your property seem like a great deal.

• Bidding Wars: Increased competition can lead to multiple offers, often driving the sale price above your initial asking price

• Faster Sale: Homes priced below market value typically sell faster and with better terms.

This strategy works especially well in the Middle Keys, where demand for well-priced homes remains strong and inventory is limited.

Why Market Value is the Sweet Spot

• Balanced Exposure: Listing at market value ensures your home is seen by the largest pool of qualified buyers

• Faster, Smoother Sale: Properly priced homes generate more showings, more offers, and less hassle for sellers

• Best Net Proceeds: You’re more likely to achieve your financial goals by letting the market drive the price up, rather than chasing buyers with price reductions later.

Takeaway for Middle Keys Sellers

If you’re thinking about selling in Duck Key, Marathon Key, or Key Colony Beach, remember: the right price attracts the right buyers. Overpricing may seem like a way to maximize your return, but it usually leads to disappointment and a lower final sale price. Trust the market data, work with a local expert, and price your home to sell, not to sit.

If you’re ready to discuss a pricing strategy tailored to your property and neighborhood, reach out today. Let’s get your home sold for the best possible price, in the shortest amount of time!

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