Competitive Pricing Calculator

Select comparable properties that are similar in size (within 20% of square footage), location (within 1 mile or same neighborhood), age (within 10 years), and features. Look for properties sold within the last 3-6 months in normal markets, or 1-3 months in rapidly changing markets. Avoid foreclosures, short sales, or properties with unusual circumstances. Quality is more important than quantity - 3-5 excellent comparables are better than 10 mediocre ones.

Price slightly above comparables (2-5%) if your property has superior features, better condition, or premium location within the neighborhood. Price at market value if your property is similar to recent sales. Price below comparables (5-10%) if you need a quick sale, the property has defects, or the market is declining. Remember that overpricing by more than 10% above market value typically results in longer days on market and ultimately lower sale prices.

Review your pricing weekly for the first month, then bi-weekly afterward. Make adjustments based on market feedback, showing activity, and new comparable sales. If you receive no showings in the first two weeks, consider a 3-5% price reduction. If you get multiple showings but no offers, the price may be slightly high. If you receive multiple offers quickly, you may have underpriced. Stay flexible and responsive to market signals.

Overpricing typically backfires - properties priced 10%+ above market value sell for 2-5% less than properly priced homes due to extended market time and buyer perception of staleness. Underpricing can actually increase final sale price through competitive bidding, especially in hot markets. A strategic 5-10% underpricing often results in multiple offers and final sale prices at or above market value, while also reducing carrying costs and stress.

Adjust your pricing based on market velocity and seasonal patterns. In appreciating markets, price closer to the higher end of your range and be prepared to adjust upward. In declining markets, price aggressively to sell quickly. Spring markets typically support higher prices, while fall/winter markets may require more competitive pricing. Monitor local market statistics like inventory levels, average days on market, and price trends to time your pricing strategy effectively.