Editor’s note: This story is the first part of a two-part RISMedia report on how to calm sellers’ fears and rationalize situations that may arise when homes similar to theirs and in close proximity are on the market. Look for part two in the coming days.
At 103 Valley Road in Westport, Connecticut, sits a little house for sale shaped just like a Monopoly game hotel, except it’s blue, not red. Next door, 105 Valley, narrower but deeper, also for sale, mirrors a Monopoly house, but it’s tan, not green. At 107 Valley, it’s back to the Monopoly hotel style. Also blue, it too is on the market.
So three homes in a row, all with For Sale signs planted in front. Probably not a very welcome development for the owners, who’d prefer their property be the only one in sight and sell for Boardwalk, not Baltic Avenue bucks.
While you as the seller’s agent or broker understand all the intricacies and strategies of working a listing, your clients very likely are first-timers, vulnerable to emotions and worrisome opinions precisely because they don’t have prior experience. So it’s on you to calm their fears and rationalize the situations that may arise.
First and foremost, of course, is their desire to make the most money from the sale. Having competitors close by can cast a pall on that goal. How do you overcome it?
“That is a complicated question,” says Lindsay Barton Barrett, a broker at Douglas Elliman in New York. “If there are three houses in a row on the market and they are resale (not new development), it can put downward pressure on price because buyers are going to feel like they’re not unique assets, and may not feel like they have to act quickly or aggressively. They may also feel that it offers a strategic advantage to bid on multiple houses and buy the one where they get the best price.
“It is unlikely that three houses next to each other would not have elements that make them differ meaningfully. The flipside is that in the low inventory environment we are in, it can bring people through the door who might not have otherwise come because they can see all three at once, and the likelihood is higher that they’ll like one compared to just one being on the market. When we’re about to list something and a similar property comes on the market, the seller may be really concerned about the competition. I tell them that if that other house makes someone come see your house, they may turn out to be your buyer.”Barrett adds that negative perceptions of what’s happening can be flipped by understanding the specifics of each property owner’s situation.
“It’s possible that if there are three houses for sale in a row, people will ask if something is wrong on the block or in the neighborhood,” she says. “But it is often a coincidence, or a situation where one owner didn’t know the value of their home, and when they see their neighbor’s listed at a certain price, they decide they’d like to sell, too.”
Broker Andrea Saturno-Sanjana, with Coldwell Banker Warburg in New York City, digs deeper on that theme.
“If it is possible to learn the reason why each owner is selling, this can give some perspective on whether there is an issue or whether it is just a coincidence that the properties are listed at the same time,” she says. “It could be that an owner is selling to relocate to a new job, which would not indicate any specific concern about the house itself.
“Two situations in which several homes could list at the same time or in rapid succession show the cyclical nature of neighborhood developments and the fear of missing out. In one, when a new subdivision is built, often all of the households move in within a year or so. Those same households might reach similar stages of life at around the same time; e.g., retirement, and so those homes might list at the same time. In another, if homes are fetching high prices in a particular neighborhood or building, other homeowners might decide it is a good time for them to sell.”
Joni Usdan, an agent with Coldwell Banker in Westport, Connecticut, but who does not represent any of the three homes cited previously, nevertheless feels that the state of the local inventory is just part of how the market prices get set, whether across the street or across town.
“Three houses in the same neighborhood doesn’t equal a glut or panic selling, and buyer agents should make sure to discuss that with their clients, making sure they are knowledgeable about what’s happening in that neighborhood as a whole,” she says. “And it goes without saying that we agents need to know the inventory and not be surprised if our buyers know about other homes in the neighborhood before we do. We make our living from being the local experts.”
Often, sellers must be reminded that real estate isn’t just about comparison—it’s about positioning.
“A nearby home might look flashier, but that doesn’t mean it’s priced right, marketed well or speaks to the same buyer,” notes Josh Jarboe, broker/owner of RE/MAX Empire Buyers in Kentucky. “I focus on controlling what we can control: pricing strategy, standout marketing and presentation. If the neighbor’s home is competition, we lean into our strengths. If it’s overpriced or poorly presented, it actually makes our listing look better. At the end of the day, buyers aren’t just shopping houses—they’re shopping value. And that’s something we can win on, no matter what’s next door.”
John Walkup, co-founder of UrbanDigs, a New York-based real estate analytics firm, is a realist when it comes to prices of similar properties for sale close by.
“The competition usually benefits buyers,” he admits. “When multiple fungible properties hit the market simultaneously, price becomes the dominant differentiator as utility, not aspiration, drives outcomes. In a slow market, that can lead to a race to the bottom, with the first price cut triggering a lowering sequence, as each seller reacts in turn to regain attention.
“However, in a fast market with low inventory, this can flip. Built-in urgency could trigger a bidding war on House A, which could then elevate perceived value in Houses B and C. Essentially, game theory kicks in: miss out on the first and overbid on the second to avoid losing again.”
Stephanie Mancilla, with RE/MAX Heritage Properties in Flanders, New Jersey, makes it known to sellers that several homes for sale close to each other is often more a mental hurdle to overcome than anything real.
“It can impact the perception of value more than the actual price, especially if buyers start to wonder why so many homes are for sale at once,” she says. “But if the pricing is spot-on and the homes are marketed well, each one can still hold its own. Ultimately, buyers focus on value, condition and how well the home fits their needs.”
What every seller and seller’s agent wants most are eyeballs on the home. The more visitors to the property, the better chance of attaining the price desired.
“If the gap is simply too wide in terms of the ‘value’ that the neighbor’s home delivers versus your home, then repositioning the list price might be a wise marketing move,” advises Suzy Minken, with Compass in New Jersey. “After all, the list price is a marketing tool for generating buyer interest to come see your home in person. In real estate, price can be very beneficial in making ‘apple vs. orange’ home comparisons.”
Pam Rosser Thistle, with Berkshire Hathaway HomeServices Fox & Roach, REALTORS® in Philadelphia, chooses to accentuate the positive.
“Often, there is a bounce effect,” she says. “Realistically, the other home may sell first. Then buyers who did not get that house may want to buy the less attractive home next to it. Two or three side-by-side homes for sale will drive traffic, which helps.”
Check back at RISMedia for part two of this story.
