Setting the right list price for your home isn’t just a box to check off before going live on the market—it’s one of the most critical decisions you'll make in the selling process. Price too high, and you risk your home sitting on the market and going stale. Price too low, and you might leave money on the table.
In today's evolving real estate market—where buyer expectations, interest rates, and inventory are constantly shifting—pricing your home strategically is more important than ever. Let’s break down exactly how to do that, using expert-backed strategies and insights from top agents across the country.
Step 1: Understand the Local Market
When it comes to pricing your home, real estate is always local—and nowhere is that more true than in New York. Whether you're selling in Brooklyn, Westchester, the Hudson Valley, or Queens, the trends can vary dramatically from one borough or county to the next. But understanding the bigger picture is key to setting the right price.
Market Shift in New York
In recent years, the New York market has seen significant adjustments. According to the New York State Association of REALTORS® (NYSAR), closed sales statewide dropped nearly 21% from 2022 to 2023, while new listings declined over 14%. Inventory has remained tight in many areas, but higher interest rates have cooled demand and slowed price growth.
Home Prices Are Holding—But Not Everywhere
Median home prices in many parts of New York are still strong, but growth has moderated. In the Hudson Valley, for example, demand remains steady due to buyers migrating from the city—but they're more price-conscious than in past years. In downstate markets like Brooklyn or Queens, price sensitivity is even higher due to affordability ceilings and rising mortgage costs.
Local Trends Matter Most
In Brooklyn, overpricing even by 5% can lead to weeks or months of stagnation.
In Westchester and Rockland, accurately priced homes are still seeing multiple offers—but only when they’re move-in ready.
In Newburgh or Middletown, overpricing by $15,000–$20,000 could mean sitting on the market while nearby homes go under contract.
That’s why it’s critical to work with an agent who knows your neighborhood—not just your ZIP code. They’ll compare recent sales, analyze demand, and account for hyper-local market movements that national averages don’t reflect.
Step 2: Use a Comparative Market Analysis (CMA)
A Comparative Market Analysis, or CMA, is one of the most important tools in your pricing toolkit. It involves analyzing recent sales of homes similar to yours in your neighborhood or area. A good CMA considers:
Square footage
Number of bedrooms and bathrooms
Lot size
Renovations and upgrades
Proximity to desirable amenities (parks, schools, restaurants)
Time on market of recent sales
Working with a real estate agent who understands the nuances of your local market ensures that your CMA reflects both the data and the intangibles—like seasonal buyer behavior or neighborhood reputation.
Pro Tip: Homes that are “move-in ready” with modern upgrades often justify a slightly higher price than similar homes that need work.
Step 3: Choose the Right Pricing Strategy
Not all pricing is created equal. Here are a few strategies top agents use to get sellers the best outcome:
1. Psychological Pricing
Pricing a home just below a round number—like $499,000 instead of $500,000—makes it appear more affordable. Buyers often perceive a home priced at $499K as a better value, even though it’s just $1,000 less.
2. Search Band Optimization
Buyers often search in price ranges (e.g., $400,000–$500,000). If you price your home at $505,000, it might not show up for buyers searching under $500K. In this case, pricing at $499,999 could get you more views and foot traffic.
3. Price Banding
If several homes in your neighborhood are priced at $350,000, $375,000, and $399,000, you can differentiate your property by choosing a price point like $365,000 or $385,000. This helps you stand out among similar listings.
4. Anchor Pricing for Bidding Wars
In hot markets, some agents intentionally list slightly below market value to attract multiple offers and trigger a bidding war. However, this strategy only works when demand exceeds supply.
Step 4: Consider a Pre-Listing Inspection
Many sellers skip this step, but it can be a smart move. A pre-listing inspection helps uncover any red flags early and gives you time to make repairs—or price accordingly.
Homes with fewer inspection surprises are less likely to fall out of contract, and they can confidently be priced closer to their market value.
Step 5: Factor in the Home's Condition and Upgrades
Buyers today expect move-in-ready homes with modern conveniences. If your home has recent upgrades—like new windows, HVAC systems, kitchens, or baths—it can command a higher price than older or outdated homes in the area.
On the flip side, homes that haven’t been updated in 10–20 years may need to be priced more conservatively unless you’re marketing them as fixer-uppers.
Step 6: Monitor Interest and Be Willing to Adjust
The first two weeks on the market are crucial. If you’re not getting showings or offers, it could be a sign that your price isn’t aligned with buyer expectations.
HomeLight reports that 65% of top agents say price reductions are becoming more common due to buyer sensitivity in the current market.
Rule of Thumb: If you’re getting showings but no offers, your home might be overpriced by 5%. If you're getting very few or no showings, it could be 10% or more.
Final Thoughts
Pricing your home right is part science, part strategy. It requires a deep understanding of your local market, the mindset of today’s buyers, and data-driven tools like a Comparative Market Analysis. But more than anything, it takes working with a professional who can guide you through every variable and make sure your home is positioned to sell—quickly and at the right price.
