Pricing a home correctly is one of the most important things you'll do as a seller. Get it right, and you attract qualified buyers, generate competition, and sell efficiently. Get it wrong — usually by pricing too high — and you pay for it in days on market, price reductions, and ultimately a lower sale price than you would have gotten if you'd priced it properly from the start.
I've had this conversation with sellers more times than I can count. And the math almost always tells the same story.
How price is actually determined
A Comparative Market Analysis (CMA) is the foundation of any pricing strategy. This involves looking at recently sold properties that are similar to yours — in size, age, condition, location, and features — and using those sales to establish a reasonable range of value for your home.
The key word is sold. Not listed. Not asking price. What buyers actually paid. That's the market telling you what it thinks your home is worth.
What about what you paid? Or what you need?
Emotionally, I understand why sellers anchor to these numbers. But the market doesn't care what you paid in 2017 or how much you need to clear to buy your next place. Buyers are comparing your home to everything else currently available and recently sold in your area. Price it accordingly.
The overpricing trap
Here's what actually happens when you price too high: buyers who would have been interested at the right price don't even come to look because you're outside their search range. The ones who do come compare you to better-priced options and move on. Days tick by. The listing goes stale. You reduce the price. And now buyers wonder what's wrong with the house — even if nothing is.
Homes that sell fast, often with multiple offers, are priced strategically. Not cheap. Strategic.
Is there a case for pricing slightly under market?
In certain market conditions, pricing slightly under comparable sales can drive interest and create competition that pushes the final price above where you started. It's a calculated strategy — not always appropriate, but worth discussing depending on what the market is doing when you list.
The bottom line
Pricing your home is a strategic decision, not a wish. The right number is grounded in data, shaped by current market conditions, and designed to get you the best possible outcome.
I'll do a thorough CMA for your property and give you my honest pricing recommendation. No flattery, no inflated numbers just to win your business. Just straight talk.
About the Author
Marc Miiller is the REALTOR® and founder of Great Alberta Homes, serving clients across Alberta whether they're buying a home in the city or searching for the perfect country acreage. With a unique background of over 25 years in civil construction and environmental work, Marc offers a perspective that goes far beyond the surface. His ability to see a home's true potential — and its potential pitfalls — is invaluable for any property, from a suburban two-storey to a 100-acre farm. Known for his witty, no-pressure approach, Marc is the trusted guide who makes the entire process feel straightforward and stress-free. He's dedicated to providing real, honest advice, wherever the road takes you.