So, you’re ready to sell your home! One of the most crucial steps in the selling process is pricing it correctly before it hits the market. Throughout our many years in business, we've consistently advised our clients that setting the right price is key to both attracting potential buyers and ensuring a smooth, successful sale. A well-priced home generates interest. A well-priced home can create interest and urgency, while an overpriced home may linger on the market and discourage offers.
Timing is key when selling a home, and seasonality plays a big role in determining the best time to list your property. In most parts of the country, spring is traditionally the ideal time to sell. The weather is improving, and many families prefer to move during the summer, when children are out of school. Fall is also a good time to sell, as most people have returned from summer vacations and are looking to settle in before the holidays. Winter, however, tends to be the slowest season due to colder weather and the busy holiday period. Keep in mind that the best time to sell can vary depending on your city, so it's important to understand your local market trends.
The principles of supply and demand apply strongly to real estate. The amount of inventory in your area—homes available for sale—can significantly impact your pricing strategy. If your home is one of many on the market and there aren’t enough buyers, you may struggle to get your desired price. On the other hand, if the market is competitive and there are fewer homes available, you might even secure a higher price than expected. Here’s a breakdown of how market conditions affect your pricing:
For nearly two years, the U.S. experienced a national seller’s market, but as of this year, many areas have shifted into more neutral territory. However, real estate trends can differ by location, with some cities still favoring sellers while others have become more favorable for buyers. Keep a close eye on your local market to make informed decisions about when and how to list your home for the best outcome
Follow these tips to set the right listing price for your home and attract potential buyers quickly.
Before setting a listing price, it’s essential to have a clear understanding of your home’s estimated value. Use online tools, like Zillow or Redfin, to get an initial estimate. This gives you a ballpark figure, but it’s just the starting point. Remember that these estimates don’t always account for unique features or upgrades, so you’ll need to fine-tune from here.
One of the best ways to determine a competitive price is by reviewing “comps”—recently sold homes in your area with similar size, features, and condition. Compare sales from the past few months to get a realistic sense of what buyers are willing to pay in your market. This step ensures your pricing aligns with the local market and helps you avoid overpricing or underpricing your home.
Look at homes that have been on the market for a long time without selling. Often, these properties were priced too high from the start. Avoid the same mistake by being realistic about your home’s value. If a similar home nearby struggled to sell due to pricing, take it as a sign to price yours more strategically.
An experienced real estate agent or appraiser can provide valuable insights into your home’s worth. Agents have access to detailed market data and know what buyers are looking for, while appraisers can give an unbiased assessment of your home’s value. Their expertise will help you set a competitive price that aligns with current market conditions.
If several homes in your area are priced similarly, you could get lost in the crowd. Avoid lumping yourself in with the competition by strategically pricing your home. Consider setting a price slightly above or below the most common price points to stand out in listings and attract more interest.
Round numbers like $500,000 or $1,000,000 can be appealing, but they often limit your reach. Instead, avoid century pricing and price just below these round numbers, such as $499,000. This approach can make your home more appealing to buyers who are searching within specific price ranges, and it can help position your home more competitively.
Most buyers use price filters when searching for homes online. If your home is priced just outside a common range, you could miss out on potential buyers. Price your home within common search brackets to ensure it appears in more buyer searches. For instance, if many buyers are searching for homes under $600,000, pricing your home at $599,000 can increase its visibility.
Consider what buyers will see and think when they view your home’s listing. Would you be willing to pay the asking price for a home in your condition? Being objective about your home’s strengths and weaknesses helps you price it more competitively and realistically.
While pricing low to encourage a bidding war can work in hot markets, it’s a risky strategy. There’s no guarantee that multiple offers will come in, and you could end up accepting a lower price than anticipated. Instead, price fairly from the start to attract serious buyers without relying on competitive bidding.
If your home isn’t getting much attention after being listed, don’t be afraid to adjust the price. It’s better to make a price reduction early on than to let your home sit on the market for too long. Homes that linger without interest can develop a stigma, making buyers wonder if something is wrong with the property. A timely price cut can reignite interest and lead to a quicker sale.
Are you selling your home in San Francisco? Do not hesitate to contact our San Francisco realtors.
