Setting the right price for your home is crucial when selling. Price too high and your home may sit on the market, price too low and you risk leaving money on the table. Whether you’re selling in Los Angeles, Tampa, or anywhere in between, finding the right price is key. This guide walks you through the factors to consider and steps to take to price your home to sell in today’s market.
Key takeaways
- Pricing at or just below market value can help your home sell faster.
- Use a home value estimator and CMA to set a competitive price.
- Overpricing can lead to longer listing times and price cuts.
- Align your pricing strategy with local market conditions and demand.
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Pricing your home right from the start is crucial
There’s no second chance at a first impression. The first few weeks your home is on the market are critical for attracting buyers. “It’s important to list your home at the right price because buyers today have more options to choose from,” says Redfin’s Chief Economist Daryl Fairweather. “If a seller lists too high, a buyer will likely just move on to another home.”
Overpricing can lead to a listing that lingers on the market, leading to price reductions later on. Underpricing, on the other hand, could mean missing out on potential profit. Before setting a price, consider all factors that impact your home’s market value.
Competitively price your home to sell in today’s market
With buyers being more selective, pricing your home competitively from the start is key. “Sellers who list their home competitively at or just below market value will likely receive multiple offers. But sellers who price above market value will inevitably have to drop their price,” says Fairweather.
She adds, “Near-record house prices and elevated mortgage rates have scared off buyers for years, and those who are still in the market are generally well prepared and understand that they have options. Today, buyers have no need to accept the terms of a stubborn seller. However, trends vary by region: Some Sun Belt cities heavily favor buyers, while a few coastal cities lean toward sellers.”
What factors influence how much can I sell my house for?
There’s no one-size-fits-all formula for pricing a home. Several key factors influence what buyers will be willing to pay:
Market conditions
Comparable sales (comps)
Home condition & upgrades
Location
Seasonality
How to price your home for sale
A good starting point is to get your Redfin Estimate, which gives you a ballpark figure of what your home is worth and what price you could sell your house for. While this isn’t a final listing price, it’s a helpful benchmark to begin your pricing strategy. Here are other methods for pricing your home for sale:
Get a Comparative Market Analysis (CMA)
A real estate agent can provide a Comparative Market Analysis (CMA), which is a detailed report analyzing recently sold homes that are similar to yours in size, condition, location, and features.
Assess current market conditions
Once you have your agent’s input, research the broader market trends in your area to set a competitive price that aligns with current demand.
Evaluate your home’s condition
Take an objective look at your home’s condition to determine the appropriate pricing strategy.
Consider your timeline
If you need to sell quickly, price your home at or just below-market value to attract buyers faster. If you have more flexibility, aim for a higher price but be prepared for a longer time on the market.
Price your home to attract offers with strategic pricing techniques
The right price needs to capture buyer attention and generate interest to sell faster.
Study active listings, not just recent sales
Consider your competition and adjust pricing based on market trends.
Consider a pre-listing appraisal
If you want a professional opinion on your home’s value, you can hire an appraiser before listing your home.
FAQ: Answers to common pricing questions
How do I know if I’m pricing my home too high?
If your home has been on the market for several weeks with little to no interest, it’s a sign that your price may be too high.
Should I price my home higher to leave room for negotiations?
Pricing competitively is generally more effective than pricing too high to leave room for negotiations.
How much can I sell my house for?
The amount you can sell your home for depends on several factors, including condition, market conditions, and comparable sales.
Is it better to list my home in the spring or fall?
The best time to list depends on your priorities, whether that’s selling quickly or getting top dollar.
What if my home doesn’t sell after a few months?
Consider adjusting the price based on feedback or improving the presentation of your home.
How do I handle multiple offers?
Consult with your agent to determine the best offer that meets your needs.
What if my home doesn’t appraise for the asking price?
If your home doesn’t appraise for the asking price, there are options to consider.