Pricing strategies in hot vs cool markets

Market conditions change how you price and how quickly homes move. Here’s how to adjust for each environment.

In a hot market

Set a price slightly below recent comps to spark competition. Many buyers search by price filters, so small reductions can trigger more traffic and stronger bidding.

In a cooler market

Price at or slightly below fair market value.
Offer incentives like home warranties or rate buydowns.
Focus on photography and early exposure to re-energize buyers.

Tip

Days on market matter more in slower cycles. Price right the first time to avoid future reductions that can make buyers wonder what’s wrong.