Pricing is the single most important decision a seller makes. It determines how quickly the property sells, whether it sells at all, and how much you walk away with after taxes and costs. Sellers who get the price right from the start spend less time on the market, attract more qualified buyers, and close at or near their asking price. Sellers who overprice spend months making adjustments — and often end up selling for less than they would have if priced correctly from day one.

Before setting an asking price, a seller needs to understand three distinct figures — and not confuse them with each other.

Market value is what a willing, informed buyer would pay for the property in the current market, based on comparable recent transactions. This is the baseline for any realistic pricing decision. It is not what you paid for the property, not what you need to net from the sale, and not what your neighbor’s unit sold for two years ago.

Asking price is the price you list the property at. This can be at, slightly above, or — in a fast market — at market value. Asking prices that are significantly above market value signal to experienced buyers and brokers that the seller either doesn’t know the market or is not serious. Properties that sit at inflated prices for months become stigmatized — buyers assume something must be wrong with them.

Net proceeds is what you actually receive after deducting Capital Gains Tax, Documentary Stamp Tax (if absorbed by seller), broker’s commission, outstanding RPT, notarial fees, and any other transaction costs. Your net proceeds may be significantly lower than your selling price. Calculate this figure before you set your asking price — not after you’ve already agreed to a number with a buyer.

The most reliable way to assess market value is through comparable recent transactions — properties similar to yours in the same building, same subdivision, or same immediate area, that have actually sold within the past six to twelve months. Active listings are less reliable as comparables because listing price and selling price often differ, and properties that have been sitting for a long time may be overpriced rather than well-priced.

For Condominium Units

The most accurate comparables are other units in the same building at the same floor tier, with the same configuration. Units on higher floors with views command premiums over lower floors in most buildings. Furnished units command different rates from bare units. A unit that has been recently renovated may warrant a modest premium over an equivalent unrenovated one — but renovation costs rarely recover fully at resale.

For House and Lot Properties

Land value per square meter in the specific street or subdivision, combined with the replacement value or depreciated value of the structure, provides the basis for pricing. Houses in the same subdivision can vary significantly based on lot size, building quality, lot position, and condition. A professional appraisal from a licensed real estate appraiser is the most reliable way to establish market value for a house and lot property if you cannot find sufficient comparable sales data independently.

What Not to Use as a Benchmark

Do not price based on what you paid for the property. The market doesn’t care what your purchase price was, what improvements you’ve made, or what mortgage balance you need to clear. Do not price based on what a neighbor’s broker claims their unit is worth — ask for actual sold data, not estimates. Do not rely solely on online listings as comparables — they show asking prices, not transaction prices.

After listing, the market gives you feedback through inquiry volume and viewing frequency. A listing that generates strong inquiry in the first two to three weeks but no offers usually means the price is close but the property presentation or listing itself needs improvement. A listing that generates almost no inquiry after four weeks is almost always a pricing problem — buyers aren’t even considering viewing it at that price.

If you receive an offer very quickly after listing — within the first week — it may mean you priced below market value. This is not necessarily a mistake if you needed a fast sale, but it’s worth knowing. Conversely, if you’re receiving offers but they’re consistently 10 to 15 percent below your asking price, the market is telling you directly where it values the property.