Learn how I analyze comps and market trends to avoid overpricing.
Pricing a home correctly is just as important as making it look great for buyers. Even the most beautiful, well-staged home can struggle to sell if it’s not priced right. I often get questions about how I determine the right price, so I want to share my process. Here are the basics I do for strategic pricing:
Step 1: Gather accurate home details. Before setting a price, I always double-check a home’s details. County records aren’t always correct, so I ask homeowners about:
• Square footage
• Number of bedrooms and bathrooms
• Single-story or two-story layout
• Lot location (corner lot, etc.)
• Upgrades or special features
This helps ensure I have the most accurate information before comparing the home to others.
"Even the most beautiful home won’t sell if it’s overpriced."
Step 2: Compare similar homes (comps). I use comparable sales to see what buyers are paying for similar homes. I focus on:
• Homes with similar square footage (within a reasonable range)
• Same neighborhood whenever possible
• Homes in similar condition (updated vs. not updated)
If there aren’t enough comps nearby, I expand my search but avoid crossing major highways or parkways since those features can affect a home’s price based on location.
Step 3: Analyze market activity. I look at three types of comps:
• Sold homes – These show actual prices buyers have paid.
• Pending homes – These don’t show final prices but indicate demand.
• Active listings – These reveal competition and pricing trends.
Overpriced homes tend to sit on the market longer, even if they look great. I make sure homeowners understand why some homes sell fast while others struggle.
Step 4: Avoid overpricing. Many homeowners think they can list their home higher just because another similar home is priced high. However, if that home has been sitting on the market for months, it’s likely overpriced. Buyers and appraisers have access to the same market data, so if a home is priced too high, it may not appraise for the contract price—leading to a failed sale.
Step 5: Set a competitive price together. Once I gather all this information, I provide a price range, and we work together to decide the best listing price. My goal is to price homes competitively so they sell quickly while still getting homeowners the best possible value.
If you’re thinking about buying or selling, I’d be happy to answer any questions and help you through the process. You can call me at (210) 906-9599 or send an email to [email protected]. I look forward to hearing from you!
