How to Price Your Home to Sell—Without Underselling It
Pricing your home is one of the most important decisions you’ll make when selling. Price it too high, and it might sit on the market with little interest. Price it too low, and you could leave thousands of dollars on the table. The goal? Price it to attract buyers and drive offers—without underselling.
Here’s how to strike that balance with confidence, along with real-world examples and expert tips.
1. Start With a Comparative Market Analysis (CMA)
A CMA is a professional report comparing your home to similar properties (called "comps") that have sold recently in your area.
It looks at:
Location
Size and square footage
Age and condition
Features (like a pool, garage, upgrades)
Days on market and final sale price
Example:
If three homes on your street sold in the past six months between $325,000 and $340,000, and yours has a larger backyard or recent kitchen remodel, you might price slightly higher—say, $345,000—without overreaching.
📊 Tip: Ask a local agent to prepare a CMA specific to your home. Online estimates can be off by tens of thousands.
2. Avoid Emotional Pricing
It’s easy to value your home based on how much you love it or how much you’ve put into it. But buyers don’t pay for your memories—they pay for market value.
Example:
You installed $20,000 in custom cabinets five years ago. That doesn’t necessarily raise your home’s value by $20K today—especially if similar homes without those cabinets are selling for less.
💡 Tip: Focus on market response, not personal investment.
3. Understand Buyer Psychology
Most buyers look within price brackets (e.g., $250K–$300K, $300K–$350K). Pricing your home just above a bracket ($301,000) may reduce visibility compared to $299,900.
Smart Strategy:
Price strategically at thresholds:
$299,900 instead of $301,000
$349,000 instead of $352,000
This captures attention from buyers using search filters.
4. Factor in Market Conditions
Your pricing strategy should reflect whether you're in:
A seller’s market (low inventory, high demand) → Room to price on the higher end.
A buyer’s market (lots of inventory, slower sales) → Pricing competitively is crucial.
Example:
If homes are sitting for 90+ days in your neighborhood, pricing aggressively at $299,000 instead of $315,000 might trigger a quicker sale and even multiple offers.
5. Consider Pre-Listing Appraisals or Inspections
A pre-listing appraisal offers a third-party opinion of your home’s value. A pre-listing inspection can uncover hidden issues that could affect your price or negotiation.
🎯 Bonus Tip: Fixing issues upfront gives you room to stand firm on your price later.
6. Use the “Price-to-Sell” Approach
Some sellers list just under market value to create urgency and competition. It’s risky—but when executed correctly, it can lead to a bidding war and a higher final price.
Example:
A home worth $325,000 is listed at $314,900. It attracts multiple buyers, resulting in a final sale of $332,000—above asking and above expected.
⚠️ Use with caution and guidance from your agent.
7. Reassess After 2–3 Weeks
If you haven’t received serious interest or offers after 2–3 weeks (in a typical market), your price may be too high. Adjust early to avoid stigmatizing the listing.
🔁 Tip: Buyers may assume something is wrong with a home that sits too long—don’t give them a reason to skip yours.
Final Thoughts
Pricing your home right isn’t about playing it safe—it’s about being strategic. A well-priced home draws more buyers, creates more demand, and often sells faster and for more money.
The key is market knowledge, smart timing, and professional advice.
Thinking about selling? I’d love to help you price your home confidently and correctly from the start. Let’s talk strategy and make sure you don’t leave money on the table.
