How to Use Data to Price Your Home Just Right

Pricing your home accurately is the most important part of selling real estate. We can market and network all day, but the pricing strategy will have the most impact on buyer interest. Overprice, and your home could sit on the market for months. Underprice, and you might leave money on the table. 

When we price a property, we rely on concrete data rather than guesswork or emotions to make sure we price your home competitively.

Analyze Comparable Sales

Your first step when pricing your home is to study recent sales of similar homes in your neighborhood, known as comparables or "comps." 

Look for homes with the same number of bedrooms and bathrooms, similar square footage, and comparable age and features. The sale prices of these comps help you understand a baseline price range for your home. 

When working with an experienced real estate agent, they will provide you with a comparative market analysis (CMA) of your home using the data available through the MLS database. This report provides the most accurate comparable sales and will be your best value estimate tool. 

Track Days on Market

The average number of days homes like yours are staying on the market is another key data point. If most comps in your area are selling within 30 days, then you’ll want to price your home so that it sells at a similar pace. If you notice a home that’s similar to yours but which has been available for longer than the market average, it’s safe to assume it’s likely over-priced. 

Overpricing your home will negatively impact the sale outcome by making it take longer to sell. You don’t want buyers to think something is wrong with your property just because it’s lingered too long without offers.

Factor in Market Conditions

Real estate markets fluctuate. Just because your neighbor’s identical home sold for $X six months ago doesn’t mean you’ll get the same, especially if the market is moving down. Consider current supply and demand, and the trajectory of market conditions.

If there is low inventory in your price range right now, you may be able to price slightly higher than the comps. But if the market is flooded with homes like yours, you’ll have to go lower to attract buyers and stand out amongst the competition. 

Why Faster Sales Are Better

The longer your home stays on the market, the more likely buyers will be concerned and slow to bite. A stale listing creates a perception that there is “something wrong” with the property. Additionally, stale listings can get hidden from some online searches. You want your home to pop up immediately for all potential buyers.

Using market data will help you set the optimal price for a quick sale, reducing headaches, and letting you move on. Our goal is to generate as much buyer competition in the first few weeks of your home being on the market, so we achieve the highest possible sale price.

To get help pricing your home competitively, contact the experienced real estate professionals at Yates Team. With the right data-driven strategy, you can list your home at a competitive price that attracts buyers fast.