How to Price Your Home Correctly

Tracy Sutherland
Jun 24
2 min read

Updated: Jun 27

One of the most important decisions you’ll make when selling your home is setting the right price. Price it too high, and it may sit on the market with no offers. Price it too low, and you could leave money on the table. So, how do you find that sweet spot? Here's what you need to know.

1. Understand the Local Market

Real estate is hyper-local. What works in one city or neighborhood may not apply to another.

Is it a buyer’s market or a seller’s market?
What are similar homes (comps) selling for?
How fast are homes moving in your area?

Tip: Look at recently sold homes within a 1-mile radius and with similar square footage, age, and features.

2. Use Comparable Sales (Comps)

“Comps” are the gold standard for pricing. These are homes similar to yours that have recently sold in your area.

What to compare:

Size (square footage)
Bedrooms and bathrooms
Lot size
Condition and upgrades
Location (school district, street, etc.)

Tip: Don't base your price on what your neighbor listed their house for — look at what it actually sold for.

3. Avoid Emotional Pricing

You may have deep memories tied to your home, but buyers see it as a product. Pricing based on what you think it's worth, rather than what the market supports, can backfire.

Stay objective and data-driven. Trust your agent’s analysis, not your feelings.

4. Consider a Pre-Listing Appraisal or CMA

A Comparative Market Analysis (CMA) from your real estate agent is often free and highly accurate.
A pre-listing appraisal offers a professional estimate, especially useful in uncertain markets.

5. Be Strategic, Not Just Competitive

Pricing slightly below market value can create a sense of urgency and attract multiple offers.
Pricing too high may force you to reduce later — which can make buyers question your home's value.

Buyers often filter online searches by price brackets, so your price should hit key psychological benchmarks (e.g., $399,900 instead of $405,000).

Final Thoughts

The right price will attract attention, generate interest, and ultimately get you the best return. With the right strategy — and the help of a knowledgeable real estate agent — you can price your home with confidence and set yourself up for a successful sale.