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    Home » Blog » Pricing Your Home Competitively in the Market
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    Pricing Your Home Competitively in the Market

    Michael GreenBy Michael GreenSeptember 29, 20256 Mins Read
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    Pricing Your Home Competitively in the Market
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    Ready to sell your house fast without leaving money on the table?

    Setting the right price is the most important decision you make when selling. Price it too high, and it collects dust on the market. Price it too low, and you’re literally throwing money away.

    The Problem:

    Most sellers want to “see what happens” with a high list price and then lower it later. That’s a losing strategy. In August 2025, 21.2% of US homes had price drops, compared to just 17.0% the year before.

    Prices keep going up, and sellers keep missing the market. The market is sending us a clear message…and smart sellers are listening.

    Understanding Current Market Reality

    The housing market has changed. Fast.

    A year ago, homes would fly off the market within 24 hours with multiple offers and bidding wars. But what’s happening now?

    According to our analysis of August 2025 market data:

    Home prices continue to rise but at a slowing rate

    In August 2025, the median home price was $439,894, up 2.7% from July.

    Sales are falling, and inventory is rising.

    New listings fell 0.2% in August, while active inventory increased 10.0% year-over-year.

    Homes are taking longer to sell and less price pressure.

    The average number of days on the market (DOM) in August was 47 days, up from 39 days a year ago.

    The share of homes selling above the list price is down to 26.9%, from 30.1% last year.

    Buyers have more options, so they can be picky.

    High prices + slowing market activity = higher inventory and more buyer’s market.

    The Bottom Line:

    The days of listing your home and waiting for the “magic” offer are over. This market is all about properly positioning your home within days of listing. Buyers have more choice than they’ve had in years, and they’re willing to walk away from any property that’s not priced competitively. Timing and strategy matter more than ever before. Want proof?

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    Work with an agent that offers flexible solutions and understands the complete step by step process to sell your house the way you need it sold.

    The Science Behind Competitive Pricing

    Did you know…

    • Your home is not worth what you paid for it.
    • Your home is not worth what you’ve invested in it.
    • Your home is not worth what you think it’s worth.
    • Your home is worth what the market says it’s worth.

    The Science Behind Competitive Pricing

    Smart pricing starts with 3 simple facts:

    Comparable sales analysis: Look at recently sold (not just listed) properties within 3-6 months in your immediate area. Make sure your “comps” are similar in size, age, condition, and location.

    Market conditions: What is the market telling you? Are we in a seller’s market, buyer’s market, or balanced market? Right now, we’re seeing a market that’s trending toward balanced.

    DOM impact: A properly priced home generates quick buyer interest and offers. But every day on the market creates negative stigma.

    Reality Check:

    Think you can list your home for whatever you want and still expect to sell? Think again. Overpricing results in fewer offers and often a lower final sale price. Buyers assume that an overpriced home is hiding something.

    Proven Strategies To Price Right From Day One

    The fastest way to competitively price your home?

    Follow these battle-tested strategies:

    Research everything

    Start with data, data, data. Look at:

    • Recent sales (within 0.5 miles of your home)
    • Active listings (your direct competition)
    • Pending sales (what buyers are currently paying)
    • Price reductions in your area

    Do NOT use automated home value estimates. They are way off the mark.

    Price below market value (calculated with the methods above) by 2-3%.

    Yes, you read that right. Pricing competitively usually gets you more money than overpricing. Aggressive pricing creates urgency, multiple offers, and bidding wars that drive up the final price.

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    Think about it. You have 2 homes on the market, both properly staged and marketed. One is priced with big padding, and one is priced to sell. Which gets more offers from motivated buyers willing to pay a premium?

    Factor in market timing

    Did you know the season you list your home makes a huge difference in price? Spring and early fall always see the most activity. But timing is relative.

    If you need to sell now, don’t wait for “perfect” conditions. Price your home competitively for the current market instead.

    Factor in your motivation level

    Be honest with yourself:

    • Do you have to sell quickly?
    • Can you wait for the “perfect” buyer?
    • Do you have time pressure from job relocation or other life events?

    Your personal timeline should play into your pricing strategy. If you’re in a hurry to sell, aggressive pricing makes more sense.

    How To Avoid The Biggest Pricing Mistakes

    You think I’m talking to other sellers when I say:

    Don’t price based on emotion.

    Your home isn’t falling apart. To buyers, it’s just another house on the market.

    Don’t ignore professional advice.

    Real estate agents are seeing market data every day. They are trained to know market conditions, and they know what data says you should list at.

    Don’t overprice with “room to negotiate.”

    Overpricing makes it harder to get your home seen. Buyers skip homes that look overpriced. They won’t offer, and you’re back to square one. Buyers will negotiate on any price you ask. All you do by overpricing is scare away buyers before they even see the home.

    Don’t compare to Zillow estimates.

    Automated valuation models are good for ballparking value but can be off by 10% or more. These are not a replacement for real, boots-on-the-ground market data.

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    Tools That Actually Work For Home Valuation

    Want to seriously dig into pricing? Check out these tools:

    MLS Data: Work with a real estate agent that can pull recent comparable sales data for you. This is the gold standard for pricing decisions.

    Professional Appraisal: You can pay for a professional, upfront appraisal. It costs a few hundred dollars but can give you confidence and peace of mind.

    CMA (Comparative Market Analysis): A good real estate agent can prepare a detailed CMA for you showing recent sales and current competition.

    Market absorption rate: How quickly are homes selling in your price range? This gives you a sense of demand.

    The Bottom Line:

    Use multiple data points and tools. Relying on one source will not give you the big picture you need to price competitively.

    Ready To Get Results

    Forget about luck. The right buyer shows up because you priced, positioned, and moved quickly once the data told you to.

    Key Points:

    • The market sets the price, not your personal wishes.
    • Overpriced homes take longer to sell and usually sell for less.
    • Competitive pricing creates urgency and multiple offers.
    • Get professional guidance from agents that actually know the market.

    The market is currently rewarding sellers who price right from day 1.

    Inventory is rising, and buyers are becoming more picky. It’s harder than ever before to catch the wrong buyer off guard with a mispriced home.

    Price it right, market it aggressively, and watch competitive offers roll in.

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    3. What’s the Easiest Way to Get Cash for Your Florida Property Fast?
    4. 5 Signs You’re Ready to Buy a Rental Property
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    Michael Green
    Michael Green
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    Michael Green is a seasoned real estate expert with over fifteen years of experience in the industry. Holding a Real Estate Management degree from the University of Wisconsin-Madison, Michael has a profound understanding of market trends, property investment, and housing regulations. His expertise has guided countless individuals through the complexities of buying, selling, and managing property, making him a trusted advisor in the field. Michael's insights are regularly featured in leading real estate publications, and he is a sought-after speaker at national real estate conferences. His practical advice and in-depth analyses empower readers and clients alike to make informed decisions in the dynamic world of real estate.

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