Home Pricing Strategies For Your Clients

How you price your properties is an important part of your marketing plan and can have a large impact on the success of your business. Here are a number of strategies you can offer your clients to help motivate buyers and move your properties.


Under Market Value.
Underpricing can be a good way to generate multiple offers on a property and may help you make a quick sale. Pricing a home under market value of similar properties may also cause a bidding war among potential buyers and drive the price to market value or higher. It may be difficult to get your sellers to agree to this strategy, but it can be quite effective.

Over Market Value.
Some realtors believe that overpricing will lead to higher initial bids on a property. Unfortunately, it may also make the property sit on the market longer. Overpricing is best used when the inventory of similar properties is low in the area. If you have the only three-bedroom, two-bath condo available in a luxury building, you may be able to command a higher price than similar units have sold for in the recent past.

Fair Market Price.
The most straightforward strategy is to price the home in the same range as other properties that are of similar style, size and condition in the area. By doing so, potential buyers who know the value of the homes in the neighborhood will consider making an offer on the property if it suits them.

Pricing per square foot.
If you have a property and can’t find any homes in your area that are similar in style, you could base the price on the square footage. Look at recent sales of properties that are as close in size and condition as possible and determine the average price per square foot. You can use that as a guideline to determine the listing price.

Offering incentives to buyers.
Including an AHS® Home Protection Plan is always a good way to help motivate a buyer. But sometimes when there’s an abundance of similar properties in the area, or a property really has to move quickly, other incentives may be offered to potential buyers. A seller may agree to help pay the closing costs, include the furnishings, if requested, or hold the mortgage to help make the sale.

Remember, the type of property, along with the current market conditions in the area, should always be considered when deciding on a pricing strategy. The most important thing is to choose the strategy that both you and your client are comfortable with and make adjustments if needed.



American Home Shield is providing the information for general guidance only. Due to the general nature of the property maintenance and improvement advice in this material, neither American Home Shield Corporation, nor its licensed subsidiaries assumes any responsibility for any loss or damage which may be suffered by the use of this information.