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As we enter in a “high” season for real estate in the Seattle area, there are two things that are true–sellers want the most amount of money in the sale of their home, and buyers want a “deal”. When it comes to selling your home, price is everything. It’s not just about what you want to make on the sale—it’s about what buyers are willing to pay. A well-priced home attracts interest, generates competition, and sells faster. An overpriced home? It can sit on the market for months, leading to price reductions and missed opportunities.
When selling your home the three things that matter most are location, condition, and price. Sometimes we can update the condition of the home, but the one place where we have full control is over pricing.
As a real estate professional, I provide a comprehensive Comparative Market Analysis (CMA) and competitive analysis to ensure your home is positioned correctly in the market. This includes a deep dive into recent sales of similar homes, a strategic look at competing listings, and an analysis of the absorption rate—one of the most important factors in determining pricing strategy.
Understanding Absorption Rate
The absorption rate measures how quickly homes are selling in a specific market. It’s calculated by dividing the number of homes sold in a given period by the number of homes currently on the market. This helps determine whether we are in a buyer’s market, seller’s market, or balanced market:
- Seller’s Market (Low Inventory, High Demand) – Homes sell quickly, and prices tend to rise due to competition. Pricing slightly above recent sales may be a viable strategy.
- Buyer’s Market (High Inventory, Low Demand) – Homes take longer to sell, and buyers have more negotiating power. Pricing aggressively and competitively is key.
- Balanced Market – Supply and demand are relatively equal, meaning pricing should align closely with comparable sales.
For example, if there are 5 homes in an area selling per month in a specific area and there are 7 currently listed, you want to be one of the first 5 homes to get an offer. By analyzing the absorption rate, I help sellers set a price that aligns with current market conditions—maximizing interest and reducing time on the market.
1. First Impressions Matter
The first few days on the market are the most important. This is when your home gets the most attention from serious buyers. If it’s priced correctly, you’ll attract strong interest and even multiple offers. If it’s overpriced, buyers may overlook it in favor of better deals.
This also means getting your home ready and making sure you are putting your best home forward.
2. Overpricing Can Lead to Price Reductions
Many sellers think they can start high and “test the market,” or expect buyers to send in a lower offer, but this strategy often backfires. A home that lingers on the market for too long becomes stale, and buyers start wondering what’s wrong with it. The result? Price reductions, sometimes multiple, which can make buyers think they have even more negotiating power.
3. The Right Price = More Offers
A competitively priced home creates a sense of urgency. Buyers feel they need to act fast before someone else makes an offer. This can lead to bidding wars, which can drive up the final sale price—sometimes even above asking.
4. It Impacts Appraisal & Financing
Even if you find a buyer willing to pay an inflated price, the home still needs to appraise for that amount. If the appraisal comes in lower than the agreed price, buyers may have to renegotiate, bring more cash, or walk away altogether.
5. You Save Time & Money
The longer a home sits on the market, the more it costs you. Mortgage payments, property taxes, utilities, and maintenance all add up. Pricing your home correctly from the start helps ensure a quicker sale, saving you time and money in the long run.
How I Help You Price It Right
I don’t just rely on generic estimates—I provide a comprehensive CMA, competitive analysis, and absorption rate study that includes:
✅ Recent sales of similar homes in your area
✅ Active listings that are currently competing for buyers’ attention
✅ Market trends & absorption rate to determine the speed of sales
✅ Buyer demand to understand what price will generate the most interest
With this data-driven approach, I help you position your home at the right price to attract serious buyers while maximizing your return.
Final Thoughts
Pricing your home right from the start is one of the smartest moves you can make as a seller. It ensures a faster sale, reduces stress, and can even put more money in your pocket. If you’re thinking about selling your home and want expert guidance on pricing, let’s chat—I’d love to help you get top dollar while avoiding common pitfalls.
