Setting the right price for your home listing can be the difference between a fast, painless sale and weeks or months of frustration — especially in today’s market. With homes spending an average of 51 days on the market, and mortgage rates in the 6.5–7% range, we’re seeing a slower sales pace.[1]
This means it’s all too easy to end up with a stale listing. Let’s explore five strategies for pricing your home that can help you sell faster and with fewer complications: using a CMA, choosing the right pricing strategy, leveraging search filters, pricing based on seasonal trends, and making the right adjustments at the right time.
Not sure where to start when pricing your home? A local experienced real estate agent can be your best resource; they understand what buyers are seeking and how much your home is worth in your neighborhood right now. Take a short quiz to start finding seasoned agents who know your market — and who’ll list your house for a pre-negotiated 1.5% listing fee.
Why pricing matters more than ever
Real estate prices are driven by three major factors: buyer demand, interest rates, and competition. When rates are low and demand is high, homes often sell quickly — potentially above asking price.
This is known as a seller’s market, and it’s been the situation in much of the U.S. for the last several years. However, the market appears to be shifting. As mortgage rates rise, fewer buyers are able to afford a home purchase, and listings can sit on the market longer, creating more competition among sellers. You can end up with more homes for sale than there are buyers, known as a buyer’s market.
In this situation, buyers have more leverage in negotiations and are more able to walk away from overpriced homes. We’re starting to see this play out on the market: nearly 20% of homes saw price cuts in May 2025.[2]
Buyer psychology also plays a big role here: Overpriced homes sit longer, and listings that sit too long can be perceived as “problem homes” by potential buyers, which can further reduce interest. It’s important to have an experienced, savvy realtor who can read the current local market and advise on the best path to take to get your home sold.
However, your list price is never final — don’t be afraid to adjust if needed. As a general rule in the current market, if you don’t get serious interest within the first two weeks or so, it’s time to reassess.
Start with a CMA (comparative market analysis)
Pricing your home right shouldn’t involve guesswork. For the best results, your price should be informed by data and grounded in reality. That’s why every pricing decision should start with a comparative market analysis (CMA).
A CMA evaluates your home against similar properties that have sold in your area recently (known as “comps”). CMAs take into consideration features like square footage, the condition of the home, upgrades, and lot size. They also consider location and recent market trends. The result is a realistic price designed to attract serious buyers.
This is not only effective, but it also helps avoid the pitfalls of emotionally driven pricing. Personal attachment and “gut feelings” can cause sellers to overprice their home, and overpriced homes tend to sit on the market longer.
Many real estate agents offer CMAs for free, and the insights you’ll gain are far more accurate than automated estimates like Zillow’s Zestimate. While these types of tools can be useful to get a ballpark estimate, they lack the insight and nuance you’ll get from a CMA performed by a local agent.
If your home isn’t selling, your agent should revisit the CMA every few weeks. Markets change quickly, and your price should reflect that.
What’s in a CMA?
- Sold comps
- Condition of the home
- Square footage
- Location
- Market trends
Choose the right pricing strategy
There are a number of core strategies for pricing a home, and each has its merits.
Market value pricing
Market value pricing is based directly on comps and current demand. This is the default for most sellers seeking a fair, competitive offer.
Market value pricing helps to price a home correctly from the outset and can attract more buyer interest earlier in the listing. It also helps to avoid stale listings, where a home sits on the market for a long time. However, it can leave less flexibility for negotiations because the price is already fairly true to the market value.
Competitive underpricing
Competitive underpricing is a strategy where you list your home slightly below its market value. Listing your home 5–10% below market can drive rapid interest and potentially spark bidding wars in high-demand areas.
The goal is usually to either sell quickly or to have bidding wars drive the price to above market value. The risk with underpricing is that going too low can send the message that the home has issues (even if it doesn’t).
Premium pricing
Premium pricing is pricing a home about 5–10% above market value. This can be a good strategy in strong seller’s markets or for homes that are very unique or desirable. It can also work for sellers who aren’t under pressure to sell quickly and can afford to wait for the right buyer.
However, overpricing a home can limit buyer interest and lead to stale listings and price reductions, so it should be used with caution. Sellers should be prepared to adapt quickly if there’s no initial interest.
Fair market pricing
Fair market pricing is similar to market value pricing — the main difference is that market value pricing is based on the expected sale price under current market conditions, whereas fair market pricing refers to a specific standard that’s more idealistic and assumes a willing buyer and seller under no pressure. It’s meant to be an unbiased “true” value.
This is generally the safest pricing strategy when comps and market conditions are stable, as it helps avoid a potential pricing rollercoaster. That said, there’s usually less potential for high offers and bidding wars compared to underpricing.
Value-range pricing
Value-range pricing is simply setting a price range rather than a single specific price. This helps broaden visibility in searches and can prompt more interest and inquiries. It can also help avoid anchoring bias, where the potential buyer inadvertently latches on to the initial listing price when judging a home.
Value-range pricing can also be a useful tactic when the home has unique features that are difficult to value. The downside is that it can lead to lowball offers that skew towards the lower end of the range.
Leverage search-aware pricing
These days, many buyers start their home searches on platforms like Zillow and Redfin. Nearly all of these platforms use price filters as a way to narrow down results.
A whopping 70+% of buyers set max price filters in $25,000 or $50,000 increments, such as $250,000, $300,000, or $425,000. This is where you can leverage search-aware pricing to maximize the number of searches your home appears in.
Rather than setting your home at a round-number price, consider listing just below those round thresholds. For example, instead of listing at $300,000, set your price at $299,900. The actual difference between these two is negligible, but you can dramatically increase your listing visibility.
In the example above, listing at $299,900 will ensure your property appears in searches for homes under $300,000 and for homes starting at $300,000. If you list at $300,000, your home will only show up in searches for homes at that amount or above — you’re effectively doubling your home’s visibility.
Time your price to the season
In most markets, spring and summer are peak times for real estate. Good weather, longer days, and families looking to move before the upcoming school year mean more buyers.
During this period, you can confidently price your home higher — the increased buyer urgency makes it more likely that you’ll get your asking price. Messaging like “priced to move before school starts” can tap into buyer urgency and drive interest.
On the other hand, winter and the holiday season usually bring a slowdown. This is especially true in colder areas where snow and shorter days make house hunting tougher from a practical standpoint.
During these months, sellers should generally price homes more competitively to stand out and attract buyers. Here, messaging like “year-end discount” can help pique interest.
Keep in mind that these trends can vary by region. For example, the Florida winter market might stay stronger due to the milder climate and the influx of snowbirds. To better understand your area’s seasonal variations, check MLS data or consult with a local real estate agent.
Know when to adjust your price
If you’re not getting traction with your listing, it might be time to pivot. Red flags that the price isn’t quite right include a lack of showings, a lack of offers, and consistent feedback about the price.
Generally speaking, if you’re not getting serious interest within 15–30 days, it’s time to reassess your pricing strategy. Listings that sit for longer than 60 days often require larger price cuts to regain momentum, so it’s best to avoid that where possible.
If you decide a price reduction is needed, aim for a 2–5% drop. This is enough to draw attention without being overly aggressive or inadvertently sending the wrong message. Anything smaller may go unnoticed by buyers and search filters, and anything larger may come off as desperate or give the impression there’s an issue with the house.
Another strategy that can help revive stale listings is to take the home off the market and relist it with fresh photos and a new price. This can help boost listing visibility and reset buyer perception of the home.
It’s also important to pay attention to any data and feedback you get from agents and potential buyers. These can be an excellent way to gauge whether your pricing strategy is working for or against you.
Bonus pricing tools & seller tips
If you want to really get the most out of your listing, consider these tips and tools:
Use tools like Zillow’s Zestimate and Redfin Estimate
As mentioned above, automated valuation models (AVMs) like Zestimate and Redfin Estimate can help give you a ballpark estimate of what your home should list for.
They’re worth using — just keep in mind that they can have significant error margins (roughly 2–8%, depending on the tool and whether the home is on the market or off the market).
Get a pre-listing inspection
A pre-listing home inspection can help uncover issues before they have a chance to derail a deal. Additionally, addressing problems up front can help justify a higher price.
Offer incentives
Seller incentives like closing cost help or warranties can help make your listing more attractive while justifying a higher price.
Consider professional photography
Homes with high-quality photos may get more attention and interest. A strong visual impression can help support a higher price.
Conclusion and next steps
Pricing a home is a dynamic process, not a one-and-done decision. While some work up front can help set you up for success, you should be prepared to pivot as needed. Following these five steps will help you set the right price at the start and know when it’s time to reassess:
- Start with a CMA
- Consider your pricing strategy
- Leverage search-aware pricing
- Time your price to the season
- Know when to adjust
To get started on the right foot, talk to a local agent for a free CMA or pricing consultation. For additional help, consider working with Clever — our agents offer full-service support for lower-than-average commission. Meet Clever agents in your area today; all it takes is answering a few quick questions.