How should I price my home for sale?

Pricing is the most consequential decision you make as a seller. Get it right, and the market responds quickly. Get it wrong, and you spend weeks correcting a problem that was preventable.

How pricing should work

Your list price should be grounded in what comparable homes have actually sold for, not what you hope to get, what you need to net, or what a neighbor listed at. The market doesn't care about any of those things. Buyers make decisions based on what they see available and what similar homes have sold for.

A CMA (Comparative Market Analysis) from a knowledgeable local agent is the foundation. It shows what buyers in your price range have been willing to pay for similar properties.

Why overpricing backfires

When you overprice, a few things happen:

• The most motivated buyers (who would have acted quickly at the right price) skip your home for better-valued options.
• Days on market accumulate. In buyers' minds, a home that sits raises questions: Why hasn't it sold? What's wrong with it?
• You eventually reduce the price, often below what you would have gotten if you'd started at market.

Overpriced homes often net less than they would have at the right starting price.

Pricing strategy in different markets

In a competitive market with low inventory, pricing at or just below market can generate multiple offers and push the sale price above ask. In a balanced or buyer's market, pricing at market value is the right play. Your agent can advise what's appropriate given current conditions.