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A Strategic Guide for Real Estate Professionals
By Tim & Julie Harris
Pricing is one of the most important skills a real estate professional can master. In today’s market—where inventory is rising, buyer motivation is inconsistent, and interest rates are shifting—mispricing a property can be the difference between a successful closing and an expired listing. Which would you rather have?
Secret: Be the listing agent when the listing sells!
Whether you’re pricing a new listing or guiding a buyer through an offer strategy, it’s time to sharpen your pricing skills. Use this guide to eliminate guesswork and build confidence in every conversation.
Step 1: Know Your Subject Property
Pricing begins with understanding the property itself—and knowing how to compare it accurately to what’s happening in your local market.
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Start broad, then narrow in. You’re not just pulling comps—you’re building a pricing strategy based on multiple data points.
Use the following factors to define your search parameters:
- Geographic Area: For typical residential homes, keep comps within the same or competing neighborhoods. For rural or unique properties, expand to a 20-mile radius and consult your broker or an appraiser.
- School Districts: In areas where schools matter, don’t cross school lines unless absolutely necessary. Know how your local schools stack up against eachother.
- Age of Home: Stick with homes within ±10 years. If there aren’t enough comps, expand if necessary. If you’re dealing with older homes, take into consideration if your comps are rehabbed, newly built infill or original.
- Condition & Curb Appeal: Consider age of the roof, HVAC, appliances, and other wear-and-tear factors. Has it been updated or rehabbed recently?
- Size: Don’t get too specific. For a 2,500 sq. ft. home, consider 1,900–3,100 sq. ft. to start, then narrow your search.
- Cost Per Square Foot: Use this cautiously. Smaller homes often have a higher price per foot than larger ones, and new construction pricing differs from resale.
- Style and Uniqueness: Is the home typical of the neighborhood, or does it stand out? Adjust accordingly for either advantage or drawback.
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Step 2: Gather Comparable Sales
Once your search parameters are set, it’s time to pull consistent comps across three categories:
- Sold – This is the true proof of value.
- Pending – These homes attracted offers. Why?
- Active – This is your current competition.
Track key metrics:
- Average list/sold/pending price
- Days on Market (DOM)
- Price reductions before going pending
- Incentives (from sellers or builders)
- Number of competing homes if you listed today
Pro Tip: Preview the competition and pending homes. Tour the new construction nearby. Call the listing agents of sold comps. This gives you insider insight no online comp analysis can replicate.
“When I previewed the active and pending homes in your neighborhood, I noticed yours is the only one with [unique feature]. That puts you in a strong position—if we price it right.”
This positions you as an expert and adds immense value in your listing presentations.
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Step 3: Create a Strategic Pricing Plan
Once you’ve narrowed your price range using solid comps and boots-on-the-ground research, it’s time to lock in your strategy.
Your Action Steps:
- Use the NAR Script:
“According to the National Association of REALTORS®, if after two weeks or ten showings we don’t have a workable offer, we need to reposition the price to more accurately reflect market expectations.”
- Consider a Pre-Inspection
Prevent price reductions due to post-offer surprises. - Prepare 3 Net Sheets
One for high, medium, and low price scenarios so the seller understands the financial outcome of each. - Ask for Help if Needed
If your subject property is outside your comfort zone, lean on your broker, coach, or even an appraiser. - Reality Check Against Active Listings
How does your pricing compare to others with:- More/less square footage?
- A garage vs. none?
- Proximity to freeways, schools, or noise?
- Higher/lower walkability or lot size?
Be honest with your sellers. If the home backs to a power line or has a dated kitchen, the price must reflect that—even in a low-inventory market.
Final Thought: Pricing Is Fluid. It’s not an exact science.
Pricing isn’t a one-and-done decision. It evolves with:
- Interest rate changes
- New listings or solds nearby
- Inventory (are there 10 homes just like your listing, or just 1?)
- Economic shifts (layoffs, relocations)
- Seasonal activity
Each Comparative Market Analysis you perform sharpens your intuition. Each conversation builds your confidence.
Don’t wing it. Follow this framework every time. Print it. Use it. And most importantly—get the training and accountability you need from Premier Coaching.
Want expert guidance and more confidence in your pricing conversations? Join us at PremierCoaching.com and become the listing agent everyone trusts.
