A few years ago, luxury properties in coastal Rhode Island and Eastern Connecticut were flying off the market with multiple offers, often above asking price. Whether it was a stately home in Watch Hill, a charming cottage in Weekapaug, or a waterfront property in Stonington, demand was hot and pricing seemed secondary.
But today’s market has shifted.
Inventory is up. Buyers have become more selective. And many sellers are facing longer time on market and price reductions - even in sought-after areas like Watch Hill and Weekapaug.
So what’s the key to a successful sale in this evolving landscape? It starts with pricing your property right - from the very beginning.
Misalignment Between Sellers’ Expectations and Market Reality
A recent survey from Realtor.com shows that 81% of sellers still expect to receive their full asking price or more. But sales data tells a different story. According to the National Association of Realtors, 44% of recently sold homes went for less than asking, and one in three sellers had to reduce their price before the home sold.
This disconnect is just as true in the high-end segment. Luxury buyers are savvy. They understand market dynamics, value, and long-term investment. Whether a home is listed at $1.5M or $5M, if it’s not aligned with current buyer expectations, it risks sitting - and stagnating.
Why Overpricing Can Backfire - Even for Waterfront Homes
It’s tempting to set a high initial price, thinking it leaves room to negotiate. But in luxury markets like Watch Hill or Weekapaug, an overpriced home sends a signal that can turn buyers away. Properties that linger on the market begin to raise questions. Why hasn’t it sold? Is something wrong?
Even a pristine, turn-key home with ocean views in Charlestown (Quonnie) can struggle if it’s priced above perceived value.
The result? Fewer showings, reduced interest, and eventual price cuts that can hurt momentum - and perception.
Smart Pricing Attracts Serious Buyers
The goal is not to list low. It’s to list right - at a price point that matches market conditions and attracts qualified buyers from day one. A skilled Watch Hill real estate agent understands the nuances of luxury property pricing in this region and will rely on hyper-local data, recent comparable sales, and current buyer behavior to craft a strategy that maximizes both exposure and offers.
Remember: a luxury home priced well doesn’t just attract interest - it generates competition.
A Market of Opportunity, Not of Panic
Here’s the good news. Prices in the region - including Watch Hill, Weekapaug, and Stonington - have appreciated significantly over the last five years. Even pricing slightly under your “dream number” can result in a meaningful return on investment. A strategic price can help you sell faster, maintain control over negotiations, and avoid the frustration of chasing the market down.
As Mike Simonsen of Altos Research puts it, “The best properties, well priced, are selling quickly in most of the country.”
The Bottom Line
Pricing strategy isn’t just a concern for entry-level homes. It matters at every tier - especially in the luxury market. Whether your property is listed for $500,000 or $5,000,000, the right pricing plan is what gets buyers in the door and strong offers on the table.
Let’s have a conversation about what today’s market means for your home, and how we can position it to sell quickly and successfully. As your local Watch Hill real estate agent, I specialize in luxury coastal properties and understand what it takes to stand out in this market.
Contact me at: [email protected]
