How to Price Your Home in a Changing Market

When the market is hot, homes seem to sell overnight. When it slows down, even great properties can sit. Pricing your home correctly—especially in a shifting market—is one of the most important decisions you’ll make. Here’s how to set a price that attracts buyers and maximizes your return.

📉 Understand Market Conditions

Start by identifying which way the market is moving:

• Seller’s Market: High demand, low inventory, fast sales
• Buyer’s Market: More listings, longer days on market, price drops
• Neutral Market: Balanced supply and demand

💡 Tip: Even in the same city, market dynamics can vary by neighborhood and price range.

🧮 Look at Comparable Sales (Comps)

Study homes like yours that have sold recently:

• Same neighborhood or school district
• Similar size, condition, and lot type
• Sold in the last 90 days, ideally

These “comps” help anchor your price in reality. Be wary of asking prices—they don’t reflect what buyers are actually paying.

🔍 Monitor Active Listings

Your competition matters. See what’s currently on the market and how your home stacks up:

• Are there lots of similar homes for sale?
• What’s the price range?
• Which listings are lingering—and why?

You want to be competitive, not just comparable.

🛠 Adjust for Unique Features

Does your home have something rare, like a large corner lot, recent renovations, or a great view? These can justify a premium—but only if they’re desirable to buyers in your area.

On the flip side, outdated kitchens or lack of central air might require a pricing buffer.

🧠 Price Strategically

Psychological pricing works. A home listed at $499,000 often attracts more attention than one priced at $505,000.

Also consider pricing just below key search thresholds. Many buyers filter homes in $25K or $50K increments.

⚖️ Don’t Chase the Market

In a declining market, starting high and dropping later usually backfires. Buyers sense desperation, and you may end up getting less than if you’d priced it realistically from the start.

📉 Example: Pricing at $550K, then cutting to $525K, often results in a lower final sale price than listing at $529K from day one.

📝 Test and Tweak

If you’re not seeing showings or getting feedback within the first 2–3 weeks, the market may be telling you something. It’s easier to adjust early than to recover later.