Getting your home priced right is absolutely critical in today’s market. After all, the correct price point will get more buyer interest, faster sales, and higher offers.
Here’s the problem:
Wrong pricing is a recipe for disaster and is the biggest mistake made by most homeowners. Most people either overprice their home and watch it sit for months, or underprice their home and leave money on the table.
No pricing strategy = no home sale.
Today we’re sharing the exact strategies that successful sellers use to get their home sold quickly and for the highest possible price. It’s what you need to price your house competitively in today’s market.
Let’s jump right in!
What you’ll discover:
- Why Competitive Pricing Matters More Than Ever
- The Hidden Costs of Overpricing Your Home
- 5 Proven Pricing Strategies That Work
- How to Price Your Home Like a Pro
Why Competitive Pricing Matters More Than Ever
Competitive pricing creates MASSIVE advantages for your home sale. If you haven’t yet figured out your pricing strategy, here are three reasons you should do it today.
The Market Has Shifted
Let me tell you something most sellers don’t realize…
The housing market today is COMPLETELY different from the crazed market we saw in 2021-2022. Homes are now sitting on the market for 47 days, a far cry from the lightning-quick sales we used to see.
Here’s the kicker…
Buyers have options again. After years of inventory shortages, market inventory has finally gone up and buyers now have choices again. Your home isn’t the only one for sale anymore. The implication here is that pricing needs to be perfect.
Why? Because buyers are looking at multiple homes at the same time. When your home is priced competitively with similar nearby homes, it gets more serious buyer attention and more showings.
Makes sense, right? Competitive pricing is one of the best things you can do to get results.
Buyers Are Pickier Than Ever
Think of your home’s pricing like a first impression.
Buyers today are more educated than ever, and they’re looking at TONS of market data before they even talk to an agent. Buyers know how much similar homes in their desired neighborhoods have sold for, and they’ll know if your home is priced too high.
If your home is priced 10% above similar homes in your area, buyers will move on to the next listing. Pricing transparency is something the internet has made unavoidable.
Speed Matters More Than You Think
One of the most underrated benefits of competitive pricing is speed of sale. Fast sales help you in multiple ways.
First, the longer your home sits on the market, the more buyers assume that there’s a reason it’s not selling. You get labeled as a “stale listing” which leads to lowball offers and strong buyer negotiation leverage.
That’s a lose-lose situation.
When a home sells quickly it usually means it will generate multiple offers and a bidding war. The best sellers use competitive pricing to create a sense of urgency and competition among buyers. If you need to sell your Peoria house fast, working with professional home-selling services can provide the speed and competitive pricing strategy needed to close quickly.
The Hidden Costs of Overpricing Your Home
Overpricing your home is one of the worst things you can do. Why? Because the consequences of overpricing snowball into bigger and bigger issues over time.
Hidden costs, price reduction stigma, missing the peak season, and buyer perception problems are a few.
The solution is simple: know that overpricing will ALWAYS bite you in the end. This is completely different from underpricing your home where you may leave some money on the table but still end up with a quick, hassle-free sale.
5 Proven Pricing Strategies That Work
Now for the meat and potatoes. The following are the exact pricing strategies that top-producing agents use to get homes sold the quickest and for maximum value.
Study Your Local Market Data
When it comes to pricing your home… Data is still king.
Here’s why: The most important thing you can do to price competitively is to have a rock-solid understanding of what buyers are actually paying for homes like yours. This means researching recent sales, not just current listings.
For example, if you’re trying to sell in a market where median home prices are $422,800 but similar homes in your neighborhood sold for $395,000 last month, you need to price in line with that.
Start with recent sales of 90 days or less that have similar square footage, bedrooms, and lot size. One of the biggest mistakes sellers make is only looking at the listing price, not the sold price.
Price Just Below Market Thresholds
Here’s a simple trick to dramatically increase your home’s exposure…
Let’s talk about how buyers search homes online. When browsing real estate listings, most buyers search for homes at round number price points. They’ll look for homes under $300,000, $400,000, $500,000, and so on.
If most similar homes in your area are selling for $385,000, don’t list yours for $389,000. List yours at $379,000 instead.
Why? Because you’ll now show up on searches for homes under $380,000 as well as searches for homes under $400,000. That’s DOUBLE exposure with only a $10,000 difference in price.
Once you understand how buyers use online searches, you can start thinking about your pricing as strategic rather than emotional. After all, over 20% of listings already have price reductions, so starting the sale at a competitive price will give you a big advantage from the get-go.
Use the “Competitive Price Point” Strategy
This is one of the most effective home pricing strategies…
Here’s how it works: Instead of pricing at the high end of your comparable range, price in the middle or even slightly below. This creates instant buyer interest and will often lead to multiple offers.
For instance, if your comp sales are between $350,000 and $380,000, most sellers will price at $375,000 or above. Smart sellers price in the mid- or low $360,000s.
Why? Because buyers will perceive it as a great value relative to other available options. This usually creates multiple offers that end up pushing the final sale price back up to market price or above.
Consider Market Timing and Your Personal Timeline
Market timing and your personal timeline are important in home pricing.
Spring/Summer Markets: During peak buying seasons with more buyer activity, you can be a bit more aggressive with your pricing since more people are looking.
Fall/Winter Markets: Off-peak buying seasons require more conservative pricing since there are fewer buyers in the market.
Quick Sale Needed: If your situation requires a quick sale because of a job relocation or financial pressure, price at 5-10% below market to create instant activity.
The key is being honest with yourself about your needs. Never let pride stand in the way of the right strategy.
How to Price Your Home Like a Pro
You now have some powerful pricing strategies to successfully sell your home competitively. Pricing your home requires market knowledge as well as buyer psychology.
Need help?
Don’t have the experience or time? Many people work with professional agents that know local market nuances like a textbook. Working with cash home buyer services can take the headache out of the entire process.
Putting It All Together
Competitive pricing is THE foundation of a successful home sale. It’s affected by recent comparable sales, current market conditions, and your own timeline.
The key is to focus on the buyer’s psychology and not your own emotions. The more you can divorce your own feelings from the pricing decision, the easier your home will sell.
The most important thing to understand is that today’s buyers have choices. Price competitively from day one, and you’ll sell faster and likely for more money than homes that start overpriced.
