Real Estate Seller’s Guide: What to Understand When Pricing Your Home for Sale

When selling your home, you want to get the most money possible without scaring away prospective buyers. It’s a tightrope walk that’s hard for the average consumer to get right. 

In this article, explore what you need to understand about real estate pricing – from market conditions and CMAs to buyer psychology and the role of an expert realtor. 

Understand Market Conditions, CMA and Seasonality 

Market conditions have an appreciable impact on the fluctuating value of your property. Influenced by diverse factors like interest rates, population patterns, and supply, these conditions determine whether you are in a seller’s market (good for you!), a buyer’s market (less ideal) or a balanced market. In a seller’s market, for instance, you can price your home higher because there is more demand than supply. 

Next, you must understand the comparable market analysis (CMA) of your property. This analysis looks at recently sold “comparables,” active listings and expired listings in your area to get a sense of your real estate micro-climate. Don’t worry about undertaking this project alone; a quality realtor will thoroughly assess your property’s CMA. 

Lastly, seasonality can influence prices—although it’s less common than some think and has less of an impact than some believe. Selling in the summer is not a bad idea, but it’s not imperative either. 

Understand Buyer Psychology 

It pays, quite literally, to understand buyer psychology. Namely, buyers don’t like seeing a) exorbitantly high numbers in comparison to comparable listings in your area, or b) round numbers, when shaving off a single dollar will appear lower. 

For example, you might feel tempted to price your home high on the off-chance that a single prospect bites on the offer. However, this strategy can lead to protracted “days on market,” and may eventually lead to an expired listing – which you don’t want. Next, consider the difference between $600,000 and $599,999; the latter is much more attractive to prospective buyers. 

Understand What Makes Your Home Unique and Noteworthy

For all the blanketed strategy and market analysis, you must remember that you’re still selling your home – not a share of the overall market, but a singular expression within it. 

What makes your property unique? Does it have a heritage past, fun home features like an outdoor kitchen, recent bathroom renovations, ample backyard space, east-facing orientation with a good view of the city, etc.? Find what makes your home stand out amid the crowd, and factor this into your overall pricing strategy. 

Understand the Role of Expert Realtors

None of the tips above are worth much if you don’t have a quality realtor in your corner. While it’s possible to price a home as a non-professional seller, it’s inadvisable. 

The best realtors have an intimate knowledge of timing, real estate micro-climates, best-practice analysis tactics, and consumer trends. They will price your home in that sweet spot that attracts consumers without sacrificing potential value.

All of this is to say that before you even consider your property’s price, pay special attention to researching the best realtors in your area. For more information about what the best realtors do, download the seller’s guide at the Harvey Kalles Real Estate website, which contains vital information. 

Hopefully, this article demystifies the general process around real estate pricing. Do as much research as possible and connect with the best professionals you can find to set yourself up for success.