I Am Thinking About Selling. How Aggressively Should I Price My Home?

Pricing strategy is perhaps one of the most important aspects of selling
your home, as it directly impacts buyer interest, the number of offers you
receive, and how quickly your home sells. A well-thought-out price can
create competition, leading to stronger offers, better terms, and a higher
likelihood of a smooth transaction. On the other hand, overpricing can
cause your home to linger on the market, leading to multiple price
reductions that may make buyers question its value or assume there’s
something wrong with the property. Conversely, pricing too low might
generate quick interest, but if not handled strategically, it could mean
leaving money on the table or attracting buyers who may not be the best
fit. The right pricing strategy should not only reflect the market conditions
but also align with your personal goals—whether that’s selling quickly,
maximizing your profit, or minimizing stress throughout the process.
Striking this balance requires careful market analysis, expert guidance,
and a clear understanding of buyer behavior.

Understanding the Current Housing Market

As of early 2025, the housing market is in a period of transition. The
Federal Reserve has reduced the federal funds rate in response to
moderating inflation and a stabilizing labor market. Despite this,
mortgage rates remain relatively high, with the average 30-year fixed-rate
mortgage hovering around 6.89% as of February. This presents
affordability challenges for buyers, especially as home prices continue to
rise gradually, with median prices up approximately 4.8% year-over-year.

Inventory levels have steadily improved, marking 15 consecutive months
of growth. However, the number of homes on the market is still below
pre-pandemic levels, which means competition remains strong in
desirable areas. Buyers are motivated but also cautious, meaning that
well-priced homes are selling quickly, while overpriced listings tend to
linger on the market. Pricing aggressively in the right way is key to
ensuring that your home attracts attention while still securing the best
possible terms.

Key Considerations for Pricing Your Home

When determining your pricing strategy, one of the first things to
consider is how to maximize your return on investment. A well-priced
home attracts serious buyers and increases the chances of multiple offers,
which can drive up the final sale price. Setting your price at or near
market value is generally the safest approach, as it ensures your home
appeals to the broadest pool of buyers. If the market is particularly
competitive, pricing slightly below market value may generate a bidding
war, pushing the price higher. However, this requires careful execution, as
there is always the risk that the home sells at that lower price without
enough competition to drive it back up.

Overpricing, while tempting, is one of the riskiest strategies. Buyers today
are well-informed and have access to vast amounts of market data,
making them unlikely to overpay. Homes that are priced too high often
receive little to no interest, forcing sellers to make price reductions later.
Once a home has been on the market for an extended period or has
undergone multiple price drops, buyers may start to wonder if something
is wrong with the property. This can lead to lower offers and ultimately
result in a lower sale price than if the home had been priced correctly
from the start.

Your personal timeline is another crucial factor to consider when pricing
your home. If you need to sell quickly, pricing competitively from the
beginning is the best way to attract serious buyers and secure an offer
within your desired timeframe. In contrast, if time is not a major concern,
you may choose to test a slightly higher price. However, this approach
requires patience, as it may take longer to find the right buyer, and you
may need to adjust your price based on market feedback.

Beyond the financial aspects, pricing strategy also plays a significant role
in minimizing stress and risk throughout the selling process. A well-priced
home is more likely to receive clean offers with fewer contingencies,
making the path to closing smoother. Favorable terms—such as fewer
inspection requests, stronger financing, and fewer contingencies—can
make a significant difference in how quickly and successfully the
transaction is completed. Additionally, ensuring that potential buyers are
pre-approved for financing reduces the risk of deals falling through,
providing you with greater peace of mind.

Strategies for Effective Pricing

To determine the best price for your home, conducting a Comparative
Market Analysis (CMA) is essential. This involves analyzing recent sales of
similar properties in your area to establish a realistic price range. Homes
with comparable size, condition, and features that have sold in the last
three to six months provide the most accurate benchmark for
determining your home’s market value.

It’s also important to monitor broader market trends, including inventory
levels, buyer demand, and economic conditions. Understanding whether
you are in a buyer’s or seller’s market can help you set expectations for
how quickly your home will sell and how competitive the offers may be. In
addition to market trends, seasonal factors can also influence pricing
strategy. Spring and summer typically see increased buyer activity, while
winter months may require more strategic pricing to attract interest.

In some cases, obtaining a professional appraisal before listing your home
can provide an objective assessment of its value. While not required, an
appraisal can give you a strong starting point and serve as a valuable
negotiation tool if buyers attempt to challenge your asking price.

Conclusion

Setting the right price for your home requires a careful balance between
attracting buyers, maximizing your return, and achieving a sale within
your desired timeframe. The housing market is constantly evolving,
making it essential to stay informed and adjust your strategy as needed.
Working with an experienced real estate professional can provide
valuable insights and guidance, ensuring that your home is positioned
competitively while still securing the best possible outcome. By pricing
strategically, you can minimize stress, avoid unnecessary delays, and
move forward with confidence toward a successful sale.

Written By

Sam Wurm, Executive Vice President of Nebraska Realty and Embarc Realty