Set Competitive Pricing — Selling Guide

The Art and Science of Pricing

Pricing your home correctly is the most critical factor in a successful sale. Price too high, and you'll sit on the market for months. Price too low, and you'll leave money on the table. The goal is to find the sweet spot that attracts multiple buyers and maximizes your return.

How Pricing Affects Your Sale

🔴 Overpriced by 5-10%

Result: Sits on market 60+ days

Fewer showings and offers
Eventually sells for less than market value
Carrying costs accumulate
Becomes "stale" listing

🟢 Competitively Priced

Result: Sells within 30 days

Multiple showings and offers
Sells at or above asking price
Quick closing process
Maximum market value achieved

🟡 Underpriced by 5%+

Result: Quick sale, money left behind

Immediate buyer interest
Multiple offers likely
May not reach full market value
Bidding war can help recovery

Comparative Market Analysis (CMA)

Your agent will prepare a CMA to determine your home's market value based on recent comparable sales.

1. Identify Comparable Properties

Ideal Comparables Should Be:

Location: Within 0.5 miles or same neighborhood

Size: Within 20% of your home's square footage

Age: Built within 10-15 years of your home

Condition: Similar level of updates and maintenance

Timing: Sold within past 3-6 months

Features: Similar lot size, garage, amenities

2. Adjust for Differences

Common Adjustments:

+$5,000-15,000: Updated kitchen or bathrooms

+$3,000-8,000: Finished basement or bonus room

+$2,000-5,000: Hardwood floors vs. carpet

+$1,000-3,000: Garage vs. carport

-$2,000-10,000: Needed repairs or outdated features

3. Calculate Price Range

Conservative Lowest Comp + Adjustments

→

Target Price Average of Adjusted Comps

→

Optimistic Highest Comp + Adjustments

Pricing Strategies

Choose the right pricing approach based on your timeline, market conditions, and goals.

Market Value Pricing

Approach: Price at estimated market value

Best For: Balanced markets, flexible timeline

Pros:

Attracts serious buyers
Reasonable negotiation room
Steady showing activity

Cons:

May take 30-60 days to sell
Single offers more common
Less urgency from buyers

Aggressive Pricing

Approach: Price 3-5% below market value

Best For: Quick sale needed, hot markets

Pros:

Multiple offers likely
Sells within 1-2 weeks
Bidding war potential

Cons:

May leave money on table
Less negotiation leverage
Quick decision required

Premium Pricing

Approach: Price 5-10% above market value

Best For: Unique homes, seller's markets

Pros:

Tests maximum market value
Room for negotiation
Higher net proceeds if successful

Cons:

Longer time on market
Fewer showings initially
May require price reduction

Psychological Pricing Tactics

Small pricing adjustments can have a big impact on buyer perception and search results.

Price Point Thresholds

❌ $301,000

✅ $299,900

Stays in "$200-300k" search filters

❌ $450,000

✅ $449,000

Appears in "$400-450k" searches

Odd Number Pricing

Prices ending in 9, 5, or 0 feel more appealing to buyers:

$275,900 $389,500 $425,000

Round Number Strategy

For luxury homes, round numbers can signal quality and confidence:

$750,000 $1,200,000

Monitoring and Adjusting

Track market response and be prepared to adjust your pricing strategy.

Week 1-2

Initial Market Response

Monitor showing requests and feedback
Track online views and saves
Expect 80% of total showings in first 2 weeks

Week 3-4

Evaluate Performance

If no offers: Consider 3-5% price reduction
If few showings: Reassess pricing and marketing
If multiple offers: Hold firm or increase price

Week 5-8

Strategic Adjustment

Significant price reduction (5-10%) if needed
Enhanced marketing and staging
Consider market timing factors

Ready for the Next Step?

With your pricing strategy set, it's time to prepare your home to make the best possible impression on potential buyers.

Continue to Home Preparation Get Pricing Analysis