I often get asked, “John, how are you able to price a home so effectively?” It’s a great question, and I’m excited to share some insights with you.

Most real estate agents look at the most recent closed transactions (or “comps”) and base their decisions on what those homes have recently sold for. These comparable homes are essential indicators for pricing a home that might be of similar style, size, condition, and age. We also consider factors such as school districts, proximity to the subject property, and other relevant details.

However, I go beyond just looking at comps. Here are a couple of additional steps I take that many agents might overlook:

1. Analyze Active Listings: Know Your Competition

Closed sales tell you where the market was, but Active Listings tell you where the market is today. This data shows exactly who you’re competing against right now.

  • Understand Your Competition: Are your neighbors pricing their properties too high? Are they pricing them too low? How long have these properties been sitting on the market?
  • Evaluate Property Condition: Compare the condition of your property to those currently listed. Is your property in better shape? If so, you justify a higher price than similar active listings.

2. Review Pending Transactions: Spotting the Trend

Pending transactions—homes that are under contract but haven’t closed yet—are a strong indicator of where the market is heading.

  • Market Trends: Are there many properties rapidly going under contract, or are there very few? A high number of quick pendings can signal a shifting, favorable market for sellers.
  • Market Stability: Even if the overall market seems stable, pending transactions can reveal more about the current velocity. They help us understand if the market is still hot or if buyers are gaining an advantage.

Conclusion: Accuracy Through Comprehensive Data

By considering active listings and pending transactions in addition to the traditional closed comps, I can provide a more accurate and competitive pricing strategy for your home. This comprehensive view saves you time, prevents overpricing, and gets you to the closing table faster.

Feel free to reach out if you have any questions or need assistance with your real estate needs. I’m here to help!