One thing home sellers need to understand is that the price their home will sell for is based on what buyers are willing to pay after comparing similar homes in the area. Pricing is not necessarily based on what the neighbor sold their house for last week because the market is constantly changing. Yes, sold, under contract and active homes are taken into consideration, but the driving price is still what buyers are willing to pay.

The comparable market analysis report provided by a real estate agent is a tool used for establishing a list price baseline. The real estate agent knows that days on market and timing are other factors to consider as well as condition of the home. But there’s even more to it than that and the real estate agent knows it. Take a look at this diagram:

As you can see, a home will have more potential buyers if it is priced at market value rather than above market value, and more potential buyers at below market value. Intelligent pricing along with proper timing can help get your home sold quickly and at the best price possible.