How to Set an Asking Price for Your Home

Setting a price for your home can be one of the most important decisions you make when placing your home on the market. The asking price can often make or break the sale. The asking price is part of the marketing of the home. Here are some tips on how to set the right asking price in a strategy to sell.

1. It's not personal. Let go of your personal feelings for your home. Potential buyers don't care how much you paid for the home, how much time you spent planting a garden, or how much money you've invested in updates. A house is only worth what a buyer is willing to pay.

2. Get a professional opinion. A real estate professional can give you an opinion of its likely selling price range. The opinion should consider the prices of comparable recently sold homes, on-the-market homes, and homes that were on the market, but weren't sold.

3. Act like a buyer. Do your research by attending open houses in your area.  Try to think like a buyer and try to make an impartial assessment of how those homes compare to yours in terms of location, size, amenities, and condition.

4. Consider market conditions. What are the home prices in your area doing? Are the prices going up or falling? What are the average days on market for a home in your price range? If prices are falling you will want to be aggressive in pricing making your home the best buy on the market and look for a quick sale before prices continue to fall.