Nearby Cheaper Listings - Now What?

When you're selling your home and a similar house nearby suddenly goes up for sale at a lower price, it can feel like a punch to the gut. You start to wonder—did I price mine too high? Will buyers skip over my home now? Is this going to kill my sale?

The truth is, this kind of thing happens all the time in real estate. But before you panic or slash your asking price, it’s worth looking at the bigger picture.

First off, pricing isn’t everything. Just because a nearby listing has a smaller number attached doesn’t mean it’s the better deal. Buyers don’t look at homes in a vacuum. They compare features, condition, updates, layout, and even curb appeal. If your home is in better shape or offers a more functional layout, that lower-priced home might not be your true competition at all.

It’s also worth noting that the lower-priced home might be underpriced on purpose. Sometimes sellers want to generate a bidding war or create buzz by listing below market value. And in other cases, the home might just need work—something buyers will quickly notice when they walk through.

Instead of panicking, take the opportunity to assess your position. Are you getting showings? Any good feedback? If buyers are walking through and agents are calling, you’re probably still in the running. But if things have gone quiet, it might be time to revisit your pricing or presentation with your agent.

I’ve seen cases where the cheaper house brought more attention to the neighborhood—and actually helped the other listings sell. Think of it as the “Costco effect.” One cheap item draws the crowd, and then people buy something else that’s a better fit.

In summary, I’d say don’t be too quick to react. Stay focused on your game plan and lean on your agent’s guidance. A nearby listing is just one small piece of the puzzle. Your home’s value is about more than price—it’s about how it shows, how it lives, and how it connects with the right buyer.