Price My Home Right: Should I List My House High or Low?
With buyer demand dampening due to high home prices and elevated mortgage rates, as a seller, you might be wondering, “How should I price my home?” Go too low, and you leave money behind, go too high, and buyers bolt. If you find it hard to choose the right price, our experts can help.
For this post, we’ve gathered expert advice and done extensive research about the various home pricing strategies. Each method has its advantages, depending on the current market conditions, your financial situation, and your selling objectives.
“I think you have a lot of factors, but currently, in our marketplace, it’s more about supply and demand,” says DeWayne Carpenter, who has 28 years of experience pricing homes and is recognized as a top-producing agent in the Melbourne, Florida, area.
“It’s more of an organic type of issue, where pricing has gone up so much because of lack of supply.” Although housing inventory has improved in 2024, it’s still well below pre-pandemic levels.
Let’s take a look at the three pricing options you’ll be considering when selling your home.
1. List your home below market value
When will pricing my home below market value work in my favor?
Sometimes, listing below market value can work for you, even though initially, it seems like the wrong direction for your wallet. Also, in some situations, it could even get you more money in the long run, if you find the right starting price, and the market is favorable. Such as in these scenarios:
You’re listing in a seller’s market
A seller’s market occurs when home inventory is low, and competition is high. By pricing your home lower, your listing price typically stands out. This gets more attention from buyers, who then submit multiple bids — often over the asking price — to compete and ultimately “win” the house as the highest bidder.
You need to sell your home quickly
You may need to move immediately due to a life change like a job relocation, moving closer to family, or for financial reasons. In this case, your concern would be more about your timing versus the market. Lowering the price, even in a buyer’s market, is better than letting the house sit when you don’t live in the area or need the money from the sale.
