Why Overpricing Your Markham Home in 2026 Will Cost You More Than You Think
In 2026, the Markham real estate market has become a tale of two cities. Competitively priced homes are selling quickly, while overpriced listings are sitting stagnant, with the average days on market creeping up to 43 days. Sellers who ignore this reality often learn it the hard way. This guide explains why pricing correctly from day one is the single most important financial decision you will make.
Michael John Lau and Neeraj Moolchandani, REALTORS® at Kaizen Real Estate in Markham, Ontario, believe in honest, data-driven advice. Many sellers fall into the trap of "testing the market" with a high price, hoping to get lucky. In today’s informed market, that strategy rarely works. Instead, it often leads to a lower final sale price than if the home had been priced correctly from the start. Here is why.
The Psychology of Pricing — Why First Impressions Matter
The first 14 days of a listing are critical. This is when your home gets the most exposure, the most showings, and the most attention from serious buyers. If you price too high during this window, you miss your best chance to sell.
The "Stale" Label: When a home sits on the market for more than 30 days, buyers begin to assume something is wrong with it. They wonder: "Why hasn’t it sold? Is there a defect? Is the seller difficult?" This stigma forces you to drop the price even lower later to attract interest.
In 2026, buyers have access to more data than ever before. They know what similar homes have sold for. If your home is priced 5–10% above market value, they simply won’t look at it. You aren’t "testing" the market; you’re hiding from it.
The Hidden Cost of Overpricing — The Price Drop Spiral
Overpricing doesn’t just delay your sale; it costs you money. Here is the typical trajectory of an overpriced home in Markham:
You list at $1.5M, but the market value is $1.4M. Buyers and their agents see the price, compare it to recent sales, and skip your listing. You get few or no showings.
With no offers coming in, anxiety sets in. You realize the price is too high, but you hesitate to drop it significantly, fearing you’ll "lose equity." You might drop it by $10k or $20k, which is often not enough to change buyer perception.
Now your listing is "stale." To get attention, you must drop the price below market value to compensate for the stigma. You end up selling for $1.38M—less than the original $1.4M market value—after months of stress and carrying costs.
The Lesson: Pricing correctly from day one maximizes your final sale price. Chasing the market down almost always results in a lower net return.
The Data — Markham’s 43-Day Reality
The average days on market (DOM) in Markham has risen to 43 days. This number reflects a split market:
| Pricing Strategy | Average DOM | Sale Price vs. Ask |
|---|---|---|
| Priced at Market Value | 12–18 Days | 98–100% of Ask |
| Priced Slightly Below | 7–10 Days | 100–103% of Ask (Bidding War) |
| Priced Above Market | 60+ Days | 92–95% of Ask (After Drops) |
Homes that are priced competitively are still moving quickly. It is the overpriced inventory that is dragging the average DOM up. By pricing correctly, you position yourself in the faster-moving segment of the market.
How to Price Correctly — The Michael & Neeraj Approach
Pricing is not a guess; it’s a science. Michael and Neeraj use a three-step process to ensure your home is priced to sell for the highest possible amount.
We don’t just look at active listings. We analyze sold properties from the last 30–60 days in your specific neighbourhood, adjusting for upgrades, lot size, and condition. This gives us the true "market value."
We share our pricing strategy with other top agents in Markham before listing. Their feedback helps us gauge buyer reaction and adjust our strategy if needed. This ensures no surprises once the home goes live.
Sometimes, pricing slightly below a psychological barrier (e.g., $999,000 instead of $1,050,000) can trigger a bidding war that drives the price higher. We identify these opportunities to maximize your return.
Michael John Lau and Neeraj Moolchandani provide honest, data-driven pricing strategies to help Markham sellers achieve the best possible outcome.
🏆 Michael John Lau & Neeraj Moolchandani — Awards & Recognition
Michael John Lau and Neeraj Moolchandani are licensed REALTORS® serving buyers and sellers in Markham, Ontario and the Greater Toronto Area. Market conditions vary by neighbourhood and property type. This guide does not constitute legal or financial advice. Always consult with qualified professionals before making real estate decisions.
