A Homeowner’s Guide: How to Set a Competitive Asking Price When Selling
Setting your house’s price is perhaps the most important decision you’ll have as a seller. Price it too high, and potential buyers will flee before they even schedule a viewing. Price it too low, and you’ll be leaving thousands of dollars on the table. You need to find the sweet spot—a price that will create interest but still value your house in today’s market.
Whether you’re selling in a slow or hot market, the rules are the same: buyers are informed, information is everywhere, and price matters more than ever. A competitive asking price doesn’t merely sell a house—it sells it faster and often on better terms.
If you are looking to sell your house in the near future, this tutorial will provide you with an understanding of how to price appropriately and avoid mistakes.
Understand the Local Market First
Each residential market is different. Even in the same metropolitan area, the neighborhoods are radically different by price, demand, and buyer expectations. Long before you ever decide what your house is worth, it’s crucial to become familiar with your neighborhood’s market conditions.
Start by looking at comparable homes—so-called “comps” that recently sold in your neighborhood. Look at houses with the same square footage, age, amenities, and condition. What did they sell for, and what did they actually sell for? Sometimes there’s a big spread, and that spread will indicate how the buyers are behaving.
Also, notice how long listings stayed on the market. If homes are selling quickly and for or near their asking prices, you might have more room to price aggressively. But if listings stay on the market for weeks and go through multiple price cuts, the market might be telling you something different.
A cleverly educated pricing plan always starts with facts—not guesses, desires, or old assumptions.
Take an Honest Look at Your Home’s Condition
It’s easy to get attached to your house, especially if you’ve lived there for decades or have put time and money into renovating. But buyers don’t see your memories—they see what they’re getting compared to other options at the same price.
Assess your home as objectively as you can. Are the appliances current? Has the roof recently been replaced? Are cosmetic or structural repairs in order? While you don’t need to have a perfectly maintained home to receive a great offer, pricing a home with clear signs of wear and tear will certainly send buyers running.
Professional appraisers, inspectors, or real estate agents can help you understand how condition influences market value. In certain cases, minor repairs or staging may deserve a bit of a premium. In others, pricing a bit below market average might be the way to go to get multiple offers and sell quickly.
Understand Buyer Psychology
Consumers have never been better informed. With web-based systems permitting instant access to price history, neighborhood comparisons, and price per square-foot analyses, consumers enter showings better equipped with a good sense of what a house should be priced at.
If your sticker price is far higher than similar houses in the neighborhood, it may never even be clicked on—much less viewed. That’s why it’s worth your while to consider how buyers are browsing. Most employ price filters when browsing around online. If your price is just over an average cut-off point ($405,000 instead of $399,000), you could lose out on a whole category of potential buyers.
Pricing to attract the largest pool of buyers raises your odds of receiving offers—and maybe more than one. And when demand grows, so does your negotiating power.
Be Aware of Market Shifts
The real estate marketplace is fluid. Interest rates increase and decrease, inventory shifts and economic trends can influence purchasing behavior rapidly. What was successful last year—or even three months prior—might not hold today.
That’s why it’s imperative to pay so much attention today to what is happening. Is inventory going up or down? Are consumers growing more wary when mortgage rates are rising? Are homes in your neighborhood selling list price or under?
If you’re not sure where your local market is, speak with a real estate professional who works in your specific area. They can provide you with up-to-date information and help you time your pricing to coincide with current demand.
This is especially true if you’re selling in Columbus or other fast-moving markets, where even small pricing missteps can mean missing out on serious buyers. Understanding local trends is the key to staying competitive and ensuring your listing doesn’t go stale.
Don’t Rely on Online Estimates Alone
Online valuation software might be handy to get an estimated idea of what your house is worth, but they are rarely accurate enough to serve as the basis for a pricing strategy. They often rely on computer programs that fail to consider key aspects like the condition of your property, recent renovations, or hyper-local variations in the market.
For example, two homes on the same block can have similar square footage, but if one features a finished basement and a new kitchen, its value can differ by tens of thousands of dollars. Relying solely on a Zestimate or an online valuation can result in you having unrealistic expectations—and disappointment later on.
Instead, use online resources as one of many resources, then combine that information with expertise and your own research to make an informed pricing decision.
Be Willing to Adjust If Needed
Even with careful planning, at some point the market will tell you if your price is reasonable. If you’ve had a ton of showings but no offer, or your home has lingered longer than comparable homes, it may be time to reconsider your price.
A price decrease isn’t a failure—it’s a strategic adjustment. For most cases, a small decrease can generate interest and draw in new shoppers who initially skipped your listing.
The secret is being adaptable. Sellers who hold on too long at a higher price often end up dropping the price multiple times, which makes the house appear old and discourages buyers. Sellers who list the house at an initial competitive price, on the other hand, get more visibility, sell faster, and even spark bidding wars.
Final Thoughts
Getting the right price is a measure of art, a dash of science—but an essential choice to make when putting your house up for sale. It can have an impact on how rapidly you sell, numbers of people viewing, and maintaining negotiating leverage.
By understanding your local market, being realistic regarding the condition of your house, and being open to adjusting things, you can create a pricing strategy that attracts serious buyers and gets your house ready to sell with confidence.
Whatever you are selling, whether it is a lovely restored home or a home that needs a little TLC, starting with the right price is your best bet for a smooth and easy sale.
