The Importance of Correct Pricing

Pricing your home correctly from the start is crucial. Overpricing leads to extended time on market and eventual price reductions. Underpricing leaves money on the table.

Comparative Market Analysis (CMA)

Your agent will prepare a CMA that considers:

  • Recently sold homes: Similar properties that sold in the last 3-6 months
  • Active listings: Your current competition
  • Expired listings: Homes that didn't sell (often overpriced)

Factors That Affect Value

  • Location and neighborhood
  • Square footage
  • Number of bedrooms and bathrooms
  • Lot size
  • Age and condition
  • Updates and renovations
  • School district
  • Current market conditions

Pricing Strategies

  • Market Value Pricing: List at fair market value based on comps
  • Below Market: Generate multiple offers and bidding wars (risky in slow markets)
  • Aspirational Pricing: Start high with room to negotiate (can backfire)

Signs of Overpricing

  • Few or no showings
  • Lots of showings but no offers
  • Only low-ball offers
  • Negative feedback from agents
  • Similar homes selling faster

When to Reduce Price

If your home isn't getting offers after 2-3 weeks, it may be time to adjust. The longer a home sits, the more buyers assume something is wrong with it.