What a Real Estate Agent Considers When Pricing a Home for Sale

What a Real Estate Agent Considers When Pricing a Home for Sale

Setting the right price is one of the most critical steps in selling a home. Price it too high, and your property could sit unsold, becoming stale and attracting low offers. Price it too low, and you risk leaving money on the table. A skilled real estate agent knows how to strike the perfect balance—creating strong buyer interest while maximising your sale price.

But what exactly does an agent consider when recommending a listing price? It’s not guesswork. A good agent draws on a combination of local market knowledge, sales data, buyer trends, property condition, and unique selling points to guide their pricing strategy.

Here’s an in-depth look at the key factors a real estate agent takes into account when pricing your home for sale.

 

1. Recent Comparable Sales (Comparative Market Analysis)

One of the most important tools in an agent’s pricing strategy is a Comparative Market Analysis (CMA). This involves reviewing recent sales of properties that are similar to yours in terms of:

  • Location

  • Size and land area

  • Number of bedrooms and bathrooms

  • Condition and level of updates or renovations

  • Style (e.g. single-storey, townhouse, apartment)

  • Features (garages, pools, outdoor areas)

By comparing your home to these recent sales—usually within the past three to six months—an agent can get a realistic idea of what the market is willing to pay for a similar property. However, they also dig deeper than the numbers to understand the full context of each sale.

2. Current Market Conditions

A well-priced home in one market could be overpriced in another. That’s why a good agent closely monitors:

  • Supply and demand: Are there more buyers than homes (a seller’s market), or vice versa (a buyer’s market)?

  • Auction clearance rates: These indicate market confidence and urgency.

  • Interest rates and lending conditions: Changes in borrowing capacity affect how much buyers can spend.

  • Time on market trends: Are homes selling quickly or taking longer?

Agents use this data to determine whether to price slightly above, below, or in line with recent comparable sales, based on current conditions and buyer sentiment.

3. Buyer Demand and Target Demographic

Understanding who is likely to buy your home also influences pricing. For example:

  • A three-bedroom home near schools may attract families looking for long-term value.

  • An apartment near a train station may appeal to first-home buyers or investors.

  • A large block with development potential may draw interest from builders or developers.

Each buyer group has different expectations and price sensitivity. A good agent will tailor the pricing strategy to suit the target market and ensure your home is priced attractively for the most likely buyer group.

4. Your Home’s Presentation and Condition

Buyers don’t just buy square metres—they buy lifestyle, comfort, and presentation. That’s why the condition and visual appeal of your home plays a big role in determining price.

Agents look at:

  • Has the home been updated or renovated recently?

  • Are the kitchens and bathrooms modern or dated?

  • Are the walls freshly painted and floors in good condition?

  • Does the home present well in person and in photos?

  • How much work (if any) will the buyer need to do post-purchase?

Two identical homes in the same street can attract very different prices based on how they present. A move-in ready home often fetches a premium, while homes needing work may need to be priced more competitively to reflect buyer effort and cost.

5. Unique Selling Features

Every property has something that sets it apart. Good agents identify and highlight these features to justify pricing or create competitive edge.

Examples include:

  • Large outdoor entertaining areas

  • Swimming pools or spas

  • Home offices or flexible layouts

  • Solar panels or energy-efficient upgrades

  • Garages, carports, or off-street parking

  • High ceilings or architectural character

  • Views, corner blocks, or privacy

Unique features can increase perceived value, especially if they meet buyer demand or are hard to find in your local area.

6. Location, Street Appeal, and Positioning

Even within the same suburb, values can vary from street to street. Agents take into account:

  • Proximity to shops, schools, transport, and parks

  • Quiet streets vs main roads

  • Orientation (north-facing homes typically attract a premium)

  • Neighbouring homes—are they well-kept or rundown?

  • General kerb appeal and how the home looks from the street

A great home in a less desirable street may need a price adjustment, while a modest home in a premium location may justify stronger pricing.

7. Land Size and Zoning

The block your home sits on can add significant value—especially if it has:

  • A larger-than-average land size

  • Development potential (subject to zoning and overlays)

  • Rear or side access

  • Subdivision potential (STCA)

  • Future growth potential due to location or planning changes

In growth corridors or development zones, land size and zoning can sometimes matter more than the house itself. Agents will factor in both current and potential use when pricing.

8. Sales Method and Timing

The method of sale—private sale vs auction—can also influence pricing strategy. With auctions, agents typically market properties with a price guide or price range to generate interest and competition. With private sale, a clear asking price or price bracket must be realistic to generate enquiry.

Timing also plays a role:

  • Selling in spring or early summer often sees more buyer activity

  • Listing during quieter periods (e.g. winter, holidays) may require more conservative pricing unless there’s limited stock

An experienced agent will know how to adjust pricing based on seasonal and method-based dynamics.

9. Buyer Feedback and Interest Levels

Once your home hits the market, pricing becomes a live conversation. Your agent will closely monitor:

  • Number of online views and enquiries

  • Attendance at inspections

  • Buyer comments and objections

  • Initial offers (if any)

If the property is well-marketed but not generating the expected interest, it may indicate the price is too high. A good agent will be proactive in adjusting the strategy if needed—before the home becomes stale on the market.

10. Your Selling Goals and Motivation

While the market ultimately dictates what buyers will pay, a skilled agent also takes your personal goals into account:

  • Do you need a quick sale?

  • Are you relying on this sale to fund your next purchase?

  • Are you willing to wait for a higher price, or is time more important?

Your motivation helps guide the pricing strategy. Some sellers prefer a fast, secure sale, while others are prepared to wait for the right buyer.

Final Thought: Pricing Is a Strategy, Not a Guess

The best price is not the highest number you hope for—it’s the number that generates interest, invites competition, and gets the right buyer to the table. A great real estate agent doesn’t just look at your home in isolation—they consider the full market picture, from comparable data and buyer behaviour to your personal goals.

Ultimately, pricing your home correctly from day one gives you the best chance of a smooth, successful, and rewarding sale.

 

Thinking of selling? Let’s discuss the right price and strategy for your home.
Call now to see how much we can achieve for your property in today’s market.
John Lewis – 0423 487 266 | [email protected]
Karen Day – 0490 242 303 | [email protected]