One of the biggest decisions you’ll make when selling your home is how to price it. Set the price too high, and buyers may skip your listing. Price it too low and you could leave money on the table. Finding the right balance is key to attracting buyers and getting strong offers.
Here are some important things to consider when pricing your home for sale.
Avoid the Most Common Pricing Mistake
In selling, time is often money. The biggest mistake sellers make is overpricing their home. An overpriced property may sit on the market longer and fail to attract offers, which means you may never even get the chance to negotiate with interested buyers. And the longer it sits, the more that buyers will expect you to lower your price, maybe even below the home’s true market value.
A realistic price increases the chances that your home will get attention quickly and generate serious interest.
Look at Recent Comparable Sales
A good starting point is to research homes that have recently sold in your neighborhood. Ideally, look at properties that:
- Sold within the last six months
- Are located within about half a mile of your home
- Have similar square footage, age, condition, and features
These “comparable sales” help establish a realistic range for your home’s value.
Consider Location Factors
Even homes that look similar can sell for different prices depending on location. Things that can influence value include:
- Proximity to shopping, parks, or recreation
- Access to transportation or major roads
- School district boundaries
- Neighborhood desirability
In fact, two otherwise similar homes may sell for very different prices simply because they fall within different school districts or back to a park or open space.
Physical barriers—such as major roads, highways, or transit lines—can divide neighborhoods and affect pricing. Homes on one side of a boundary may command higher or lower prices than homes just a few blocks away.
Work With a Real Estate Professional
Many sellers rely on a real estate professional to prepare a comparative market analysis (CMA). This analysis evaluates recent comparable sales and current listings to help determine a competitive asking price.
It’s often smart to interview multiple agents who specialize in your neighborhood and compare their pricing recommendations before deciding how to list your home. Click here for a list of questions to use when interviewing a REALTOR: 10 Questions to Ask a REALTOR | MD Homeownership
Dollars and Sense
A successful home sale starts with the right asking price. By researching comparable homes, understanding local market factors, and working with a knowledgeable real estate professional, you can position your home to attract buyers and sell more efficiently.
You can read more about pricing your home to sell and other steps in the selling process when you download our Home Seller Toolkit: Selling Your House | MD Homeownership
