If you’re thinking about 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 really the last “normal” year before the pandemic market boom — and we’re finally getting back to those 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 need to be mindful of the shift and adjust your expectations accordingly. Here’s the truth: if you list too high right out of the gate and have to lower the price later, you could actually end up leaving money on the table. In fact, pricing your home properly from day one is the best way to make sure you get strong, serious offers.
A good agent doesn’t just guess at a number. We look at real data — sales of comparable homes right here in San Pedro and Rancho Palos Verdes — and we 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 are behaving in the local market — what they’re actually paying, not what sellers are hoping for.
- We design a pricing strategy that gives your home the best chance to grab attention and generate real urgency from buyers.
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 that are priced right, especially in those first four 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 to regain interest.
The last thing you want is to list your home too high, watch it sit for weeks, and then have to lower the price just to attract buyers. Pricing it competitively from day one, with the guidance of a local expert who knows the area well, will save you time, stress, and money.
Mike Harper and Peter Hazdovac are co-owners of HH Coastal Real Estate, an independent local brokerage.
