The 3 Things You Risk by Pricing Too High – Especially in Beverly Hills and Los Angeles, CA

In luxury real estate markets like Beverly Hills and Los Angeles, pricing your home correctly from day one is more than a suggestion—it’s a critical strategy. In today's shifting market, where inventory is rising and buyer expectations are sharpening, the margin for error is slim.

According to June 2025 data from Realtor.com, 20.7% of U.S. home listings saw a price reduction. But in California, that figure was even higher at 20%, with some West Coast states like Oregon and Arizona seeing cuts as high as 27%–29%. This means many sellers are learning the hard way what happens when you overprice a listing—especially in competitive, high-end markets like LA.

Overpricing Comes at a Cost
It’s tempting to reach for the sky—especially in neighborhoods with record-breaking sales. But anchoring your price to last year’s market or to your neighbor’s unique sale can backfire quickly. Here are three common consequences of pricing too high:

1. Price Drops That Raise Red Flags

Reducing your price weeks into a listing often makes buyers suspicious. They may assume something is wrong with the home or that you're getting desperate. In markets like Beverly Hills, where buyers are savvy and often working with experienced agents, price drops can weaken your negotiation position and result in lower offers.

2. Stalled Plans

When a home lingers on the market unsold, dreams get delayed. Whether you're upsizing in Bel Air, relocating to Brentwood, or downsizing in Westwood, an overpriced listing can stall your move and put your next chapter on hold.

3. Becoming an Accidental Landlord

Renting out a luxury property in Los Angeles isn't always the safety net it seems. Managing tenants, wear-and-tear on high-end finishes, and longer vacancies due to a smaller renter pool for multimillion-dollar properties can cause major headaches.

These weren’t part of your original plan—and they don’t have to be your outcome.

The Power of Local Pricing Intelligence
While the national average shows about 1 in 5 homes are cutting prices, markets like Beverly Hills and Los Angeles have their own unique dynamics. Price reductions in the West, including California, are occurring more frequently than in the Northeast, which only saw 13% of listings reduce prices. That tells us that local inventory and buyer behavior matter.

Beverly Hills, for example, remains one of the most desirable luxury markets globally. But even here, buyers are cautious. They're comparing square footage, design pedigree, and lifestyle offerings like walkability or views. In a market flooded with choice, overpriced homes often sit while well-priced listings generate multiple offers.

How a Great Agent Helps You Nail the Price
A seasoned agent understands that pricing isn’t guesswork—it’s a blend of data, market feel, and negotiation foresight.

As Zillow notes:

“Well-priced homes are more likely to sell quickly, but pricing your home to sell quickly and for maximum dollar requires strategy and knowledge of your local market.”
In Los Angeles, the difference between selling and sitting often comes down to:

Recent comps in your specific zip code (90210 vs 90077 vs 90069)
Buyer demand at specific price bands (e.g., $10M–$15M vs $20M+)
Visual and lifestyle appeal (historical pedigree, design style, neighborhood prestige)
Time of year and competition
Sometimes, pricing just below market can drive up interest, spark a bidding war, and result in a final price that exceeds expectations. Other times, pricing at market value creates the perception of fairness and urgency.

A top local agent—especially one who deeply understands the nuances of luxury buyers—will guide you to the right strategy for your goals.

Bottom Line
Overpricing in today’s Los Angeles real estate market, even in luxury enclaves like Beverly Hills, can lead to stress, delays, and lost money. With competition rising and buyers growing more selective, your best chance to succeed is to price right from the start.

Let’s connect to build a pricing strategy based on data, experience, and what’s really happening in your neighborhood. Whether you're selling a historic Paul Williams estate in Pasadena or a sleek modern in the Bird Streets, we’ll help you sell with confidence—and avoid the costly detours.

Call Christophe Choo at (310) 777-6342 to tour your future home "HERE" or click "HERE" to estimate your home value