Pricing Considerations
WHAT FACTORS INFLUENCE
A HOME’S PRICING?
When pricing a property we consider several factors, both leading and lagging indicators as well as internal and external forces for your home.
LAGGING INDICATORS
An important consideration is the lagging indicator of closed sales when there are relevant properties nearby with similar fixtures, finishes and size. This is a significant consideration and we take into account the appraisal process.
We contrast closed sales with current market data to determine if it’s a balanced, increasing or decreasing market and adjust accordingly.
LEADING INDICATORS
There are several leading indicators for a home’s pricing strategy - competing homes for sale or pending sales, online traffic and engagement, showing activity, agent feedback and price alignment with market conditions.
Another significant leading indicator is the days on market averages. Homes that remain active longer than local benchmarks risk diminishing leverage, even when the property shows beautifully.
In a rapidly evolving market pricing needs to be continually evaluated.
A home’s condition, location, and level of finish are among the most influential and often most controllable factors when optimizing your price and overall market position.
To support sellers who wish to enhance their home before listing, Compass Concierge offers a seamless solution for making strategic upgrades now and paying at closing It’s a thoughtful way to elevate presentation while preserving your cash flow.
Homes that have been recently updated within the last two years with current design trends, avoid overly personalized finishes, and are priced with precision tend to generate the strongest interest, highest engagement, and the greatest opportunity for competitive offers. In today’s market, presentation and pricing work hand in hand to protect your leverage.
Ultimately, there are three core reasons a home does not sell: Price Condition Location And all three truly lead back to one central principle: the price must reflect the condition and the location from the very start.
Thoughtful positioning creates momentum, and momentum creates results
EXTERNAL MARKET FORCES
Some of the many external factors that influence a home’s sale include interest rates, stock market performance particularly in the luxury sector legislation, seasonality, inventory levels, and absorption rate.
While these elements are beyond our control, staying attuned to them is essential for making informed, strategic decisions. A subtle shift in any one of these factors can impact buyer behavior, pricing expectations, and the pace of the market.
By monitoring these trends closely, we can proactively adapt your marketing approach, ensuring your home remains positioned to attract the right buyers at the optimal time Understanding the broader market landscape is part of delivering a truly refined and confident selling experience.
PRICING STRATEGIES
We typically present a few tailored pricing strategies to help you position your home thoughtfully in today’s market:
1 Retail Approach
This approach broadly does not work in today’s market It’s reserved for a very specific, custom and unusual homes without any relevant properties.
2 Market Value
This is the most common and balanced strategy designed to align your home with current market expectations while maximizing visibility and interest
3 Strategic Discount Approach
When timing is a key factor and a quicker sale is desired, this option can create strong initial momentum Pricing just below market value creates heightened interest and can encourage competitive offers This approach works really well in today’s market.
A well-crafted pricing strategy is vital, as your home’s first impression sets the tone for the entire sale.
Extended time on the market can diminish leverage and invite opportunistic offers.
STRATEGIC PRICING
TODAY
The Valley’s real estate market is made up of numerous micro-cycles, each with its own distinctive characteristics. What succeeds in one neighborhood may not in another but rest assured, we monitor these nuances closely as full-time, active agents across the entire Valley of the Sun.
Together, we will craft a tailored pricing strategy that reflects your home’s unique features, condition, and location ensuring it is positioned to attract the right buyers and achieve the optimal outcome.
Backed by over 65 years of combined expertise, we offer a level of insight into the local market that only time, commitment, and deep community roots can provide.
Whether you’re purchasing your first home, expanding your investment portfolio, or preparing to sell, you’ll have an awardwinning team beside you recognized for “Excellence in Real Estate” and consistently honored among the “Best of the Best.”
We are dedicated to delivering exceptional service, thoughtful guidance, and unwavering advocacy from beginning to beyond closing
Please feel free to call, text or email with any questions.
Jen, Cynthia, Brittany, Teresa, Christina & Katie
Questions?
We’re happy to help! Please don’t hesitate to reach out.
