Here's the harsh truth: pricing your home correctly is more important than almost anything else you'll do as a seller. Price it right, and you'll sell quickly at full value. Price it wrong, and you'll either leave money on the table or watch your listing go stale.
But how do you know if your price is right? What are the warning signs that you've priced too high? Or worse—that you could have gotten more?
This guide will show you the exact metrics and signals that reveal whether you're in the sweet spot, leaving money on the table, or scaring buyers away.
The Pricing Sweet Spot
The perfect price attracts multiple interested buyers, generates competitive offers, and sells within 30-45 days at or above asking. It's high enough to maximize your return but realistic enough to generate serious interest.
Warning Signs You're Overpriced
Overpricing is the #1 mistake sellers make. Here's how to tell if you're asking too much:
1. Low Online Engagement (First 2 Weeks)
Red Flags:
- ⚠️ Fewer than 50-100 views in the first week (in a typical market)
- ⚠️ Very few saves/favorites (people aren't interested enough to come back)
- ⚠️ Low social shares or inquiries
Why it happens: Your listing isn't appearing in buyer searches because you've priced above their budget filters, or buyers see the price and immediately scroll past.
2. No Showings or Very Few Requests
Red Flags:
- ⚠️ Fewer than 3-5 showings in the first 2 weeks
- ⚠️ Showing requests stop after initial spike
- ⚠️ Only "looky-loos" or unqualified buyers
Why it happens: Buyers don't believe your home is worth the asking price based on the photos and description.
3. Negative Feedback After Showings
Red Flags:
- ⚠️ "It's nice, but not at this price"
- ⚠️ "Needs too much work for what they're asking"
- ⚠️ "We found better value elsewhere"
- ⚠️ Buyers ghost after viewing (no follow-up or offers)
Why it happens: The home doesn't live up to the price expectation. Buyers feel it's not a good value.
4. You're Priced Above Comparable Homes
Red Flags:
- ⚠️ Your price per square foot is 10%+ higher than similar recently sold homes
- ⚠️ Similar homes are listed lower in your area
- ⚠️ Better homes (updated, larger) are priced similarly
Why it happens: You've priced based on what you want rather than what the market will pay.
5. Days on Market Are Piling Up
Critical Timeline Benchmarks:
- 30+ days: Your listing is starting to look stale. Buyers wonder "what's wrong with it?"
- 60+ days: Serious problem. You've likely missed your best buyer pool.
- 90+ days: Major red flag. Most buyers assume it's overpriced or has hidden issues.
Important: The longer a home sits, the more you'll ultimately have to reduce the price. Early price cuts are more effective than late ones.
How to Fix Overpricing:
- 1. Act quickly: Don't wait months—reduce within 2-4 weeks if you're seeing these signs
- 2. Make meaningful cuts: Reduce by at least 3-5%, not $1,000-$2,000 token amounts
- 3. Get below search filters: Drop from $550K to $499K to appear in "under $500K" searches
- 4. Refresh your listing: New photos, updated description, re-share on social media
- 5. Consider re-launching: In some cases, pulling the listing and relisting at the right price works better
Warning Signs You're Underpriced
Underpricing is less common but can cost you thousands of dollars. Here's how to tell if you left money on the table:
1. Overwhelming Immediate Interest
Warning Signs:
- 📈 100+ inquiries in the first 24-48 hours
- 📈 20+ showing requests within days
- 📈 Back-to-back showings all weekend
What it means: The market sees your price as too good to be true—you could have asked more.
2. Multiple Offers Immediately
Warning Signs:
- 📈 5+ offers within the first week
- 📈 Bidding war erupts instantly
- 📈 Offers 10-20%+ above asking
- 📈 Buyers waiving conditions to compete
What it means: While multiple offers are good, too many too fast suggests you priced below market value.
3. You're Significantly Below Comparables
Warning Signs:
- 📈 Your price per square foot is 10%+ lower than recent sales
- 📈 Similar homes (same condition) listed higher
- 📈 Buyers comment "this is a steal"
What it means: You're undervaluing your home's features or market position.
4. Sold Too Fast Without Competition
Context Matters:
Ideal timeline: 30-45 days with 2-4 serious offers is optimal.
If you sold in under 7 days with only one offer, you might have been able to generate competition with slightly higher pricing and strategic timing.
How to Avoid Underpricing:
- 1. Test the market first: Soft-list to gauge interest before committing to a price
- 2. Don't rush: Give yourself time to see multiple buyer reactions
- 3. Research thoroughly: Look at 5-10 truly comparable sales, not just the highest or lowest
- 4. Factor in your home's unique features: Updated kitchen, prime lot, recent reno? Don't undersell
- 5. Set an offer review date: If interest is high, create competition by reviewing offers together
How to Find Your Perfect Price
Neither too high nor too low—here's how to land in the sweet spot:
Step 1: Comprehensive Market Research
Analyze Comparable Sales:
- ✓ Find 5-10 homes sold in the last 3-6 months
- ✓ Same neighbourhood (within 1-2 km)
- ✓ Similar size (±200 sq ft)
- ✓ Similar age and condition
- ✓ Same property type (detached, semi, condo)
Calculate average price per square foot: This is your baseline.
Step 2: Adjust for Your Home's Unique Features
Add Value For:
- ✓ Recent renovations (kitchen, bathroom)
- ✓ Finished basement
- ✓ Premium lot (corner, larger, private)
- ✓ Upgraded systems (HVAC, roof, windows)
- ✓ Extra parking or garage
Subtract Value For:
- ✗ Needed repairs or updates
- ✗ Busy street or less desirable location
- ✗ Lack of parking
- ✗ Functional obsolescence (choppy layout)
Step 3: Factor in Current Market Conditions
🔥 Hot Seller's Market:
Multiple buyers, low inventory → Price at high end or slightly above comps
⚖️ Balanced Market:
Equal buyers and sellers → Price right at comps, be competitive
❄️ Buyer's Market:
High inventory, fewer buyers → Price at low end of comps or slightly below
Step 4: Use Strategic Pricing Psychology
Smart Pricing Tactics:
- Price just below thresholds: $499,000 gets more views than $500,000 (search filters)
- Avoid "round" numbers: $487,500 looks more researched than $490,000
- Leave room to negotiate: Most buyers expect 2-5% negotiation room
- Consider the $9 trick: $489,900 vs $490,000—small difference, psychological impact
The Testing Strategy: Soft-Listing
Pro Tip: Test Before You Commit
Not sure about your price? Soft-list your home on platforms like HouseIndex to gauge interest before committing to an official listing.
What you'll learn:
- ✓ Is there immediate strong interest? (You might be underpriced)
- ✓ Are buyers hesitant or making low offers? (You might be overpriced)
- ✓ What questions are buyers asking? (Reveals perceived weaknesses)
- ✓ How does your home compare to others they're viewing?
Based on this feedback, you can adjust your price before officially listing—avoiding the stigma of a price reduction later.
Key Metrics to Track
Monitor these numbers to know if your pricing is on target:
Online Views
Target: 100-200+ in first week
Too low = overpriced or poor photos. Way too high = might be underpriced.
Showing Requests
Target: 5-10 in first 2 weeks
Fewer than 3 = likely overpriced. More than 20 = potentially underpriced.
Offer Timeline
Target: 1-3 offers within 30-45 days
No offers in 30 days = price issue. 5+ offers in 7 days = may have underpriced.
Days on Market
Target: 30-60 days (varies by market)
Under 14 days + multiple offers = perfect. Over 60 days = reduce price.
The Bottom Line
Pricing your home correctly is part art, part science. You need:
- ✓ Data: Solid comparable sales and market research
- ✓ Objectivity: Honest assessment of your home's condition
- ✓ Flexibility: Willingness to adjust based on market feedback
- ✓ Patience: Time to let the right buyers find you
Watch for the warning signs:
Overpriced Signals:
- ✗ Low online views
- ✗ Few showing requests
- ✗ No offers after 30+ days
- ✗ Negative buyer feedback
Underpriced Signals:
- ✓ Overwhelming immediate interest
- ✓ Multiple offers within days
- ✓ Offers well above asking
- ✓ Significantly below comps
The perfect price generates steady, qualified interest, attracts 2-4 serious offers, and sells within 30-60 days at or slightly above asking.
If you're not seeing these results, it's time to reassess. The market is always right—listen to what it's telling you.
Want to Test Your Price Before Going All-In?
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