Why Do Two Similar Homes on One Street Sell for Such Different Prices?
- kerissaC
- Jan 7
- 4 min read
It’s a question many homeowners ask: how can two houses on the same street, with nearly identical size and layout, sell for prices that differ by $200,000 or more? The answer goes beyond simple market trends or luck. It comes down to how buyers perceive each home, how well the home is prepared for sale, and the subtle psychology behind pricing.
Even when homes look similar on paper, buyers react to them very differently. One home might sell quickly with multiple strong offers, while the other lingers on the market and sells for much less. Understanding what drives these differences can help sellers position their homes better and buyers make smarter decisions.
Buyers Buy Feelings, Not Just Features
Most buyers say they rely on data and facts when choosing a home. Yet, the reality is that emotion plays the leading role. Within the first 30 seconds of stepping inside, buyers form a gut feeling about the home. This feeling shapes their entire experience and influences how much they are willing to pay.
For example, one home might feel:
Bright and airy
Clean and fresh
Easy to imagine living in
While the other might feel:
Dark and dated
Cluttered or overwhelming
Like a project or a lot of work
Even if the homes have the same square footage and layout, the emotional response is very different. Buyers often don’t realize this feeling drives their decisions, but it directly affects the final sale price.
Preparation Removes Barriers for Buyers
The home that sells for more usually isn’t perfect, but it is prepared with intention. Preparation means removing obstacles that make buyers hesitate or discount the home’s value.
Key elements of good preparation include:
Fixing small repairs before buyers notice them
Using neutral colors and thoughtful staging to create a clean look
Arranging furniture and spaces to feel open and easy to navigate
On the other hand, the lower-priced home often leaves buyers thinking about what needs to be fixed or updated:
“We’ll need to repaint those walls.”
“That kitchen looks outdated.”
“The floors seem worn out.”
Even if these repairs are minor or affordable, buyers mentally subtract much more from the asking price. A $25,000 fix can feel like a $100,000 problem in their minds. This mental discount lowers the price offers.
Pricing Psychology Shapes Buyer Perception
How a home is priced influences how buyers see its value. Pricing too high can scare buyers away, while pricing too low might make them suspicious about hidden problems.
Sellers who price their homes strategically create a sense of value and urgency. For example:
Pricing just below a round number (e.g., $499,000 instead of $500,000) can attract more attention
Setting a competitive price encourages multiple offers, which can drive the final sale price up
Clear, honest pricing builds trust and reduces buyer hesitation
In contrast, homes priced without strategy often sit longer on the market. Buyers may assume the seller is inflexible or the home has issues, which lowers offers.
Location and External Factors Still Matter
While the focus is often on the home itself, small differences in location or external factors can affect price:
A home closer to a busy street or noisy intersection may sell for less
Views, landscaping, and curb appeal influence first impressions
Nearby amenities like parks, schools, or shopping can add value
Even on the same street, one home might have a better position or more attractive surroundings, which buyers notice subconsciously.
Real-Life Example: Two Homes, Same Street, Different Outcomes
Consider two homes on Elm Street, both 2,200 square feet with three bedrooms and two bathrooms. One home was freshly painted in neutral colors, had minor repairs completed, and was professionally staged. It sold within a week for $650,000 after multiple offers.
The other home, just a block away, had outdated wallpaper, visible wear on the floors, and a cluttered layout. It stayed on the market for two months and finally sold for $440,000.
The $210,000 difference came down to how buyers felt walking through each home, the perceived effort needed to update, and the confidence in the asking price.
What Sellers Can Do to Close the Gap
If you want your home to sell closer to the higher end of the market, focus on these steps:
Make small repairs early. Fix leaky faucets, cracked tiles, or squeaky doors before listing.
Declutter and depersonalize. Remove excess furniture and personal items so buyers can imagine themselves living there.
Use neutral colors. Fresh paint in soft, neutral tones appeals to a wider audience.
Stage thoughtfully. Arrange furniture to highlight space and flow. Consider professional staging if possible.
Price smartly. Work with your agent to set a competitive price that attracts buyers without undervaluing your home.
What Buyers Should Keep in Mind
Buyers can benefit from understanding these dynamics too:
Don’t rely only on the initial emotional reaction. Look beyond staging to the home’s structure and condition.
Consider the cost of updates and repairs realistically, not just the seller’s price.
Pay attention to how the home is priced compared to similar homes in the area.
Remember that a well-prepared home often means fewer surprises after purchase.
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