Pricing Your Home to Sell: Not Too High. Not Too Low. Just Right.

Your home's listing price can make or break your sale from the get-go. When you price too high you decrease your buyer pool and transaction opportunities, and when you price too low you can leave money on the table. The goal is to set the price just right to increase visibility and drive more buyers your way, potentially increasing the final price.

Pricing comes down to supply and demand. You and your realtor will start with a CMA (Comparable Market Analysis) to breakdown market prices for all recently sold, comparable properties in the immediate neighborhood.

The CMA: Pull Comparable Listings

First, look at every similar home that has been listed and sold in the same neighborhood as your property over the last six months. The homes should be within a 1/4-mile to a 1/2-mile radius of yours unless there are only a handful of comps in the general vicinity. Pay attention to neighborhood dividing lines and physical barriers, such as major streets, freeways, or railroads. Don't compare inventory from the "other side of the tracks." The closer and more similar the house is to yours, the better.

Homes that have sold are the most direct comparables as they have already "proven" their value. Pay close attention to the list price, days on market, and any price reductions that lead up to the final sale price.

It is common for homes to sell over list price in a seller's market, while homes generally sell for list price or less in a buyer's market.

Adjust The Price on The Price Spectrum

Your list of comparable properties will provide a price range in which you should price your own home.

Start at the average sales price of the comps and compare your home to each comp on your list. Adjust the price higher or lower according to elements like home and lot square footage, number of bedrooms and bathrooms, layout, upgrades, curb appeal, amenities, and age of items like roof, electrical, A/C, etc.

Pay attention to what active and under contract properties are listed for, as this is your direct competition in your micro market. Ask yourself why a buyer would or would not prefer your home over these options, then adjust your price accordingly.

Listen to the Market

Remember that pricing a home isn’t a “set-and-forget” procedure. A lot of factors come into play when selling or buying a home, and not all of them can be anticipated. If you can be flexible and react quickly to changing market conditions or new information, you’re more likely to get the best price with the least aggravation.