So You're Getting Priced Out
You found the perfect house. You toured it, dreamed about the furniture placement, maybe even envisioned the first dinner party. You made what felt like a strong offer, maybe even above asking, and then…You lost.
Not by a little. By a lot.
If this sounds familiar, you’re not alone. Being outbid is one of the most demoralizing experiences for homebuyers especially in major metropoplitan markets like the Bay Area, where underpricing is a long-standing, strategic practice. In many neighborhoods, homes are intentionally listed below market value to generate buzz, drive open house traffic, and create bidding wars. It’s not unusual for properties to sell for 20% to 30% over the asking price and in some cases, even more.
To buyers unfamiliar with this tactic, it can feel like a bait-and-switch. The list price says one thing, but the reality of what it takes to win tells a very different story. It’s frustrating, confusing, and disheartening. And it can lead many to feel like they’re being priced out of entire neighborhoods or even the market altogether.
But here’s the truth, being priced out shouldn’t come as a surprise; not if you’re working with the right agent. A good agent should prepare you for this landscape by helping you interpret list prices realistically based on recent nearby sales. They should providing detailed market comps to understand what similar homes have actually sold for, not what they were listed for. A good agent should guiding your offer strategy with clear expectations about competition, likely overbidding amounts, and realistic winning numbers. They should also be conversing with the listing agent about the listing’s activity and buyer expectations before even writing up your offer.
If you're constantly shocked by sale prices or unsure how much over asking to offer, it's time to revisit the foundation of your homebuying strategy.
What You Can Do If You’re Feeling Priced Out:
Reevaluate Your Search Criteria
Consider expanding your search radius, adjusting your must-haves, or exploring emerging neighborhoods where competition isn’t as fierce.Study the Real Market
Ask your agent for weekly market reports, sold price comparisons, and breakdowns of list-to-sale price ratios in your target areas.Get Clear on Your Max Budget Emotionally and Financially
Know what you’re truly willing and able to spend, and make peace with walking away if the numbers don’t align.Adjust Your Offer Strategy
In highly competitive areas, writing a clean, compelling offer with flexible terms may carry more weight than simply raising your price.Align With an Agent Who Tells You the Truth
You deserve an agent who demystifies the process, not one who leaves you guessing. Winning in this market means being informed, not just hopeful.
Buying a home is one of the biggest financial and emotional investments you'll ever make. If you're feeling priced out, know that it’s not a reflection of your worth. It’s a call to realign your approach. You’re not doing anything wrong. You just need the right information and the right advocate to help you move forward with clarity and confidence. Let’s talk. Together, we’ll build a strategy that works for you.