The Listing Price – It is a marketing tool in 2022

Bill Tierney Cohasset Ma Blog Cover Home Buyer Tips

How do you determine your listing price in 2022?

Welcome to the world of 2022. Very little in real estate is the way it was only 24 months ago. How long this stage lasts is anybody’s guess.  So, how do you determine your listing price in this 2022 market? Well, let’s start with understanding what a listing price is, and how it was traditionally arrived upon by a home seller. 

What is the definition of a “listing price”?

According to, a listing price is, “the amount expressed in dollars, specified in the listing agreement, for which the seller is willing to sell the real property through the listing agent. Or said differently, the listing price is the price, in dollars, that the seller is willing to sell the property for on the open market. This is typically the figure you would see when shown what the home is offered for on the market. It does not mean the seller is obligated to accept an offer at the listing price, or any offer for that matter. 

If you are the seller, how would you arrive at the listing price? Traditionally a seller would contact a real estate agent to arrive at this figure. Then the agent, after touring the home proposed to be sold would prepare a comparative market analysis (a CMA). Generally, CMAs include: 

  • data on where other similar homes have sold
  • where other competing homes are currently offered for sale
  • general local market conditions 

Usually, after reviewing this data and how it is relevant to the home in question, the seller and the real estate professional would determine the listing price.

The 2022 Listing Price

In our current 2022 market, things happen a bit differently.  The listing price may initially be formulated using the methods above. But, because we are in such a shortage of supply of competing homes for sale there is often little talk of competing homes as there is not another similar home on the market for sale.  This lack of supply of competing homes leads to an imbalance in the marketplace for buyers. 

For homebuyers in this 2022 market, often the listing price is simply a place to start thinking about what to offer.  A good buyer’s agent will help their client determine what is a good value for the home under consideration. And together they will discuss what offer the buyer can make to trump competing offers. Often this new offered price is disconnected from the listing price.

For home sellers, a lack of competing properties leaves them in a position of relative power. Quite often there is a buyer who will come in with an offer well over the listing price due to the competition for the property in question. Often the buyer has outside factors contributing to their concept of relative value.  These can be things such as a relocation package, a 1031 exchange, or a growing family. And thus will contribute to being able to make a very strong offer. The “X-Factors” here is whether there is such a buyer for the home in question, and how high will this buyer go?

At the end of the day: How do sellers determine a listing price in 2022?  The answer may be a hybrid of what previous sellers have gotten and what an inventory-starved market of buyers will pay for the home in question.  Recent experience has shown that homes priced a bit lower are bubbling up well over the listing price. And homes that are priced too high tend to linger on the market before seeing a price reduction.

The best course of action is for sellers to work with a local real estate professional who knows the market and who understands what will sell at what price. 

If you are curious about what your home is worth in today’s market, Click Here.

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