The Real Strategy Behind Pricing Your Home (It’s More Than You Think)
When it comes to pricing a home, most people are surprised by what actually goes into it.
It’s not about pulling a tax-assessed value.
It’s not about relying on an automated online estimate.
There’s a much more detailed strategy involved.
If you’ve watched a few of our videos, you’ve probably heard me say the term CMA — Comparative Market Analysis. That’s the tool we use to determine a home’s true market value. And it’s far more strategic than most people realize.
Step 1: Looking at What Has Actually Sold
The first thing I analyze is homes that have sold within the past 90 days in your immediate area.
And when I say comparable — I mean truly comparable.
Not just:
Same zip code
Same neighborhood name
But homes that match:
Similar square footage
Similar layout
Similar lot size
Similar level of updates and condition
From there, I narrow it down to the most similar properties and focus on two key things:
What they sold for
How long they took to sell
This tells us what the market has already proven buyers were willing to pay. It’s real, confirmed data — not speculation.
Step 2: Studying What’s Pending
Next, I evaluate homes that are currently pending.
Pending homes show us something powerful:
👉 What buyers are agreeing to right now.
This is real-time demand.
If homes are going under contract quickly and at strong prices, the market is holding steady.
If they’re sitting longer or going under contract below recent sold prices, that signals a shift.
Step 3: Understanding the Competition (Active Listings)
Active listings are important — but they’re often misunderstood.
Active homes represent your competition. However:
Active price ≠ market value.
A home can be priced high and sit on the market for weeks (or months). That doesn’t mean it’s worth that number — it means it hasn’t attracted a buyer at that price.
If active listings are lingering at prices that worked three months ago, that’s a sign demand may have softened.
Reading the Direction of the Market
This is where strategy comes in.
If:
Pendings are selling below recent sold prices
Active listings are sitting longer
Days on market are increasing
Then pricing has shifted downward.
If:
Pendings are moving at similar prices
Homes are going under contract quickly
Days on market remain consistent
Then pricing is holding steady.
A strong CMA isn’t about choosing the highest number to make a seller feel good.
It’s about reading the direction of the market and positioning your home correctly from day one.
Because in real estate, your first few days on the market are everything.
Why Correct Pricing Matters
Overpricing can:
Cause your home to sit
Lead to price reductions
Make buyers wonder what’s wrong with it
Strategic pricing can:
Create strong first-week activity
Generate competitive interest
Potentially lead to multiple offers
The goal is positioning — not guessing.
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And if you want to talk anything real estate in Austin or the surrounding areas, message us directly. I’m always here to help.
