Video: How to Price Your Home for Sale

Setting the Right Listing Price: How to Maximize Your Home’s Value

If you’ve decided to sell your property, you’ve likely spent a lot of time thinking about what price you could list it for. It’s only natural to want to get the highest amount possible—especially if you have plans for that money, such as buying your next home, traveling, or saving for retirement.

Some homeowners have a solid understanding of their local market and an idea of what their property could sell for, while others may be less familiar. While you can certainly do your own research, your Realtor plays a crucial role in assessing the market, determining the fair market value of your home, and recommending the best listing price strategy to help you achieve the highest sale price within your desired timeline.

This is why setting the right listing price is critical.

Why Pricing Your Home Correctly Matters

You only have one opportunity to be a fresh new listing on the market. Even if you decide to remove and re-list your home later, the listing history (including previous prices) will still be visible to Realtors and potential buyers.

Pricing correctly from the start helps you avoid multiple price adjustments or re-listings, which can stigmatize your property and give buyers negotiating power. That’s why it’s essential to work with your Realtor to determine a strategy that aligns with your goals and current market trends.

In addition to pricing, there are a few more things you need to consider when selling your home. Watch these videos next to learn what you can expect:

The Three Pricing Strategies for Selling Your Home

There are three common pricing strategies sellers can choose from. The right option for you will depend on your property, the local market, and your selling goals.

1. Listing at True Market Value and Accepting Offers Anytime

This strategy involves setting a list price that accurately reflects the home’s fair market value. The price is determined based on a thorough market analysis, and buyers are welcome to submit offers at any time.

Why this works:

A properly priced home feels approachable and fair to buyers.
Buyers may be motivated to act quickly to avoid losing out.
The property is positioned as a reasonable and competitive option.

However, this approach only works if the listing price truly reflects market value—overpricing can deter buyers, and underpricing can leave money on the table.

2. Listing Below Market Value and Setting an Offer Date

A popular strategy in competitive markets like Toronto, this approach involves pricing the home lower than its true value to generate significant buyer interest. A specific date is set for reviewing offers, often leading to multiple bids and potentially a bidding war.

Why this works:

A lower list price attracts more buyers, increasing showings.
More showings often translate into multiple offers.
Bidding wars can push the final sale price above market value.

This strategy is effective in strong seller’s markets where demand outpaces supply. However, it’s not foolproof—if market conditions shift, a low list price might not generate the expected level of interest, leaving the seller in a tough spot.

3. Listing High with Room for Negotiation

Some sellers choose to price their home above market value, expecting buyers to negotiate down. While this strategy provides room for haggling, it comes with significant risks.

What are some of the costs associated with selling your home? Watch this video to learn all about home seller costs.

Why this can backfire:

Buyers searching within their budget may not even see your listing if it’s priced too high.
A property perceived as overpriced may be ignored by buyers.
If the home sits on the market too long, a price reduction may be necessary, which can weaken your negotiating position.

Overpricing often leads to longer days on the market and, in many cases, a final sale price lower than if the home had been priced correctly from the start.

Choosing the Best Pricing Strategy for Your Home

To summarize, here are the three main listing strategies:

List at fair market value and accept offers anytime.
List below market value with a set offer date.
List at a high price with room for negotiation.

Whichever strategy you choose, make sure it’s based on thorough market research and professional guidance. By setting the right listing price from the start, you’ll maximize your chances of a quick sale at a great price—and avoid the pitfalls of price reductions and re-listings.

If you’re considering selling your home, consult with a knowledgeable Realtor to determine the best pricing strategy for your specific situation. Good luck with your sale!