Across the country, sellers are waking up to a sobering reality: The market has shifted. While home prices remain high, appreciation has stalled, and nearly 1 in 5 homes on the market took a price cut in April, according to Realtor.com® data.
It’s a tense time to list, and nothing rattles a seller quite like seeing a neighbor put their home up for sale at a significantly lower price.
"What usually happens is a neighbor lists their home below market value, and suddenly, sellers next door are in a panic,” says Jessica Robinson, owner and founder of Family Nest North Central Florida.
But panic doesn’t have to dictate your next move. A neighbor’s lower list price isn’t a verdict on your home; it’s a challenge you can meet with strategy, not fear.
Why a neighbor might list for less
Take a step back. Chances are your neighbor’s list price has more to do with their own circumstances than with yours.
"It might be due to the house needing repairs, the owner wanting to move very badly, or low pricing to attract multiple offers," explains Alexei Morgado, a real estate agent in Florida and CEO and founder of Lexawise Real Estate Exam Preparation.
It could also reflect broader market shifts: 18% of home listings had price cuts—up 2.5% from the same time last year, according to the Realtor.com® April 2025 trends report. That increase suggests some sellers are adjusting to affordability concerns and softer demand.
So why might a neighbor list for less?
They need to sell quickly
Their home needs repairs
The property has lower square footage
The lot is smaller
It offers fewer amenities
It’s near a powerline or other undesirable feature
The local market is cooling
No matter the reason, don’t take it personally. Your home may still command more, especially if you respond with reason instead of emotion.
Why you shouldn’t immediately slash your price
“Hastily lowering the price without analysis” is one of the most common mistakes homeowners make, reveals Ryan Broyles, founder and broker at Broyles Real Estate Group.
Your list price wasn’t chosen on a whim; it was based on your agent’s research, current comps, and your home’s specific features. That logic doesn’t suddenly become invalid because of a neighbor’s listing.
"Pricing should happen as a function of diligent comparative market analysis and specific attributes of your home and not as a reaction to neighboring listings," adds Morgado.
Instead of making a knee-jerk change, use the moment as a checkpoint. Consult with your agent and consider rerunning your comparative market analysis (CMA). You may find that prices for comparable homes have softened since you listed—or you may find renewed confidence in your price.
“One of my clients had a neighbor list $25,000 under market,” says Robinson. “Instead of slashing her price though, we doubled down on marketing, highlighted her home's unique features, and she ended up selling above asking.”
In a shifting market, thoughtful strategy almost always outperforms fast reactions.
Focus on what makes your home stand out
If you’ve decided to hold your price, resist the urge to fixate on your neighbor’s listing. Instead, double down on what makes your home more valuable.
That means showcasing the features that justify your price point.
“Highlight the positive selling aspects of your house, like renovations made to it or energy efficiency improvements, to support the price difference,” adds Morgado.
To reinforce your value:
Invest in professional staging
Emphasize updates like new windows, a modern roof, renovated kitchen, or an upgraded HVAC
Promote features the competing listing may lack (like a larger yard, better layout, more natural light, or garage access)
If your listing starts to lose traction after your neighbor hits the market, focus on reenergizing buyer interest.
"Make sure your landscaping is trimmed and neat, that your siding and trim is in good shape and that front and garage doors are clean and look fresh," says Omer Reiner, licensed real estate agent and president of FL Cash Home Buyers.
Small refinements can also make a big difference. Try:
Refreshing your listing photos and description
Being flexible with showing times
Upgrading your marketing package with video tours or drone footage
Boosting curb appeal to make a strong first impression
“The key is understanding that a neighbor's low listing doesn't have to define your home's worth,” explains Robinson. “Buyers are savvy; they look at value, not just price.”
When to rethink pricing
Sometimes, the market speaks—and if your home has been sitting longer than expected or showings have slowed to a trickle, it may be time to reconsider your pricing.
A strategic price adjustment doesn’t mean you’ve failed. In fact, it could help you attract a wider pool of buyers, generate stronger offers, or move your home faster—with fewer contingencies.
Before dropping your price, take these steps:
Revisit your comparative market analysis (CMA)
Ask your agent for honest feedback from showings
Consider offering buyer incentives—like covering closing costs or including appliances—before making a cut
Most importantly, stay grounded. A neighbor’s listing may shake your confidence, but it doesn’t define your home’s worth. Today’s buyers are value-driven. With the right combination of pricing, positioning, and presentation, your home can still sell on your terms.
Allaire Conte is a senior advice writer covering real estate and personal finance trends. She previously served as deputy editor of home services at CNN Underscored Money and was a lead writer at Orchard, where she simplified complex real estate topics for everyday readers. She holds an MFA in Nonfiction Writing from Columbia University and a BFA in Writing, Literature, and Publishing from Emerson College. When she’s not writing about homeownership hurdles and housing market shifts, she’s biking around Brooklyn or baking cakes for her friends.
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