Pricing a home is part art, part science — and in today’s Santa Fe real estate market, it’s more strategic than ever. Set the price too high, and your listing risks sitting on the market, leading to price cuts and lower offers. Price too low, and you could leave money on the table.
As a local Realtor® with deep expertise in Santa Fe City and Santa Fe County, I help sellers find the “sweet spot” that attracts strong offers without underpricing. Here’s how to price your home right in 2025’s evolving market.
📊 Step 1: Understand Current Market Conditions
The first step in pricing is understanding the broader market. According to Sotheby’s International Realty Q3 2025 report:
- The median sales price in Santa Fe was $673,000, up ~1% year-over-year.
- Average days on market (DOM): 59 days, a 31% increase from 2024.
- Inventory: Up 20% year-over-year, giving buyers more choices and leverage.
👉 Sotheby’s International Realty Market Updates
Why it matters: These numbers signal a shift toward a more balanced market. Buyers are choosier and more price-sensitive — so strategic pricing is essential.
💡 Step 2: Use Comparable Sales (Comps) — Not Emotion
Many sellers overprice because they “feel” their home is worth more. Buyers, however, rely on recent comparable sales (homes similar in size, condition, location, and features sold in the last 90–180 days).
Here’s how we evaluate comps:
- Price per square foot in your neighborhood.
- Adjustments for upgrades, views, and lot size.
- Days on market and whether properties sold below, at, or above list price.
💡 Pro Tip: Pricing 2–3% above the most comparable sale may be justified if your home is in superior condition or has premium features. Pricing 5–10% above without justification often leads to stagnation.
📉 Step 3: Avoid the “Testing the Market” Trap
One of the most common seller mistakes is listing high to “see what happens.” Data shows this approach backfires:
- Homes that require a price reduction spend 45% more time on the market and sell for up to 11% less than homes priced correctly from day one.
- Extended DOM can signal to buyers that a property is stale or overpriced, leading to lowball offers.
Solution: Price competitively from the start to generate immediate interest and potential multiple offers.
🧭 Step 4: Factor in Seasonal Timing
Santa Fe’s market isn’t static — it ebbs and flows with the seasons.
- Spring and early summer: Peak activity and faster sales.
- Late fall and winter: Slower buyer traffic, but less competition.
If you’re listing in a slower season, consider pricing slightly below peak comps to encourage activity.
📍 Step 5: Account for Neighborhood Micro-Trends
Santa Fe is made up of distinct micro-markets, and pricing varies significantly across them:
- Historic Eastside: Luxury homes often exceed $1.5M, but buyers expect turnkey quality.
- Las Campanas: High-end golf and equestrian properties; pricing strategy must consider amenities and membership appeal.
- Rancho Viejo, Tierra Contenta, Nava Ade, Casa Alegre: Popular with first-time and move-up buyers; homes here tend to sell faster when priced in line with recent sales.
💡 Pro Tip: A home priced correctly in Rancho Viejo might sit if priced the same way in Eldorado — understanding these nuances is key.
🛠️ Step 6: Adjust Quickly Based on Feedback
The market speaks early. If showings are few and no offers appear within the first 2–3 weeks:
- Reassess pricing against active competition.
- Review online presentation and marketing strategy.
- Make small, targeted adjustments (e.g., 2–3%) rather than large drops later.
FAQ: Pricing Your Santa Fe Home
Q: Should I price higher to leave room for negotiation?
A: Not in today’s market. Overpricing reduces showings and weakens your negotiating position. Strategic, accurate pricing attracts stronger offers.
Q: Can upgrades justify a higher price?
A: Yes, but only if they align with buyer expectations and comparable homes. Over-improving beyond your neighborhood can limit your return.
Q: What if my home doesn’t sell in 30 days?
A: It’s time to review pricing, presentation, and marketing — often a small price adjustment can reignite buyer interest.
Conclusion
Pricing your home correctly isn’t about guessing — it’s about strategy. With more inventory, longer days on market, and a more discerning buyer pool, sellers who price smartly from day one are the ones achieving top dollar.
📞 Contact Adrienne DeGuere, Realtor® for a custom pricing strategy tailored to your property and neighborhood. Together, we’ll position your home to stand out — and sell — in today’s Santa Fe market.
