Pricing Your Home For Sale

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There are two distinct type of market conditions that will ultimately determine your pricing strategy. These aren’t that complex and are simply effects of the supply and demand of buyers and sellers in the market. So before going further, take a moment to understand the following terms:

Sellers Market: This is a market that is characterized by rising home values typically due to the market having a lower inventory of homes for sale while having a higher demand of qualified buyers for those properties. This means that the leverage is on the sellers end to price homes more preferable since there are less homes available for sale than there are the number of buyers looking to purchase them. Simply put there are more buyers than sellers in this market.

Buyers Market: This is a market that is characterized by declining home values typically due to the market having more inventory of homes for sale while having a lower demand of qualified buyers for those properties. This means that the leverage is on the buyers end to get the price they want since there are more homes available for sale than there are the number of buyers looking to purchase them. Simply put, there are more sellers than buyers in this market.

So your first step in determining your homes value is to understand what type of market you are in, then you must
price ahead of the market!

Pricing Ahead of The Sellers Market

In a market with rising home values, if a seller wants a price that‟s ahead of the market, the market may go up enough to make that price attractive for buyers. Time can cure some mistakes and make people look smart. Despite this, a sound pricing strategy predicated on a current realistic value is always more effective then banking on market movement to justify or validate your price. Being accurate from the get go is crucial..
Sellers market

Pricing Ahead of The Buyers Market

If sellers fall behind a market with declining home values, they can end up chasing the market down. Because falling values generally outpace seller price reductions, pricing above market can be particularly costly. Having the right Realtor with the expertise needed to effectively gauge market trend reversals can make all the difference.

buyers market

Price Competitively

The First 30 Days are Critical. The right price is important.

  • A property generates the most interest when it first hits the market.
  • The number of showings is greatest during this time if it is priced competitively and accurately.
  • Starting too high and dropping the price later misses the excitement needed to sell your home.
  • Many homes priced too high initially end up selling below market value.

price competitive

Additional Seller Resources

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