I’m a big believer in pricing your home right from day one — because in real estate, time is not your friend. Let me explain.

When you first list your home, you’re not just putting a price tag on it — you’re sending a message to the market. The first few weeks are your best chance to attract serious buyers. After that, the clock starts working against you. The longer your home sits, the more buyers become suspicious, wondering if something’s “wrong” with it — and pricing power starts to diminish.

Asking Price Decay in Real Estate: Why Timing Is Everything

Forbes recently covered a dramatic phenomenon called asking price decay — the way a home’s selling price drops the longer it stays on the market. Drawing from 20 years of data in Manhattan and Brooklyn, the analysis shows a clear pattern: after 30–45 days on market, discounts start to deepen, and by 180 days, prices for townhouses can diminish by nearly 17%. Condos and coops retain their pricing power a bit longer — reflecting their greater liquidity — but all properties suffer from this “time tax.”

My Take: 4 Takeaways That Sellers, Buyers, and Investors Should Watch

Here’s what this means for you:

Act Fast or Reprice Fast

• My opinion: The first 30–45 days are your “prime selling window.” If you’re not seeing strong activity or offers by then, it’s a signal you may need to cut your price quickly.
• How this matters: Sellers who adjust pricing promptly typically sell faster and closer to their original asking price — avoiding the slow slide into discount territory.

Watch Market Regimes to Guide Your Strategy

• My view: Hot markets absorb listings quickly; weak Housing market penalize overpricing.
• How this matters: If you’re selling in a weak market, pricing accurately from day one is crucial. If you’re in a strong market, you may have more flexibility.

Property Type Influences Decay Rate

• My observation: Townhouses suffer faster discounts (up to 17% by 6 months), while condos and coops retain pricing power (about 91% after 6 months).
• How this matters: Sellers of less liquid properties should be more aggressive and realistic in pricing. Buyers can use this knowledge to negotiate a better deal on a slow-moving townhouse.

Time Is a Tax — But It’s Also a Signal

• My view: A home sitting on the market signals weakness to buyers. The “time tax” isn’t arbitrary; it reflects less competition and less urgency.
• How this matters: Sellers should view this as valuable market feedback and adjust pricing or marketing strategies quickly in response.

Actionable Guidance — What Should You Do?

• If you’re a seller: Price to sell from day one. Monitor activity after 30 days; if showings are slow, consider a price cut immediately. Prepare your home to show at its best and be flexible with negotiations.
•  If you’re a buyer: Look for listings that have been sitting 60+ days — you may find motivated sellers willing to negotiate. Townhouses, in particular, may present a buying opportunity at a discount.
•  If you’re an investor:  Watch for weak signals — a steepening price decay curve could reflect a softening market — perfect for buying underpriced properties.

Q&A: What Is Asking Price Decay?

What is “asking price decay”?

It’s the phenomenon where a home’s selling price drops the longer it stays on the market. The more days it sits, the more negotiating power buyers have — and sellers may need to cut their price to attract a buyer.

Final Thoughts

Ultimately, pricing a home is a delicate balance. It’s a market test — a way of seeing how much a buyer is willing to pay. But when days on market start adding up, it signals something isn’t clicking. Whether you’re selling or buying, understanding the “time tax” lets you respond smarter and faster.