Determining the right price to ask for your home involves an objective evaluation of its Market Value. But, what is a house really worth?

First, let's look at some common misconceptions of what a home should sell for. Your home is not worth:

• Whatever treasures you have in it, or memories you have of it.
  
• What you need to sell it for to clear a profit or pay off other bills
  
• What you want to pay for another home somewhere else
  
• What it appraised for when you refinanced it
  
• What it's assessed at
  
• What you heard your neighbor's house sold for
  
• How much it's insured for
  

Market Price is determined by willing buyers and willing sellers, not real estate agents. The list price for your home should be based on the following:

• Supply-Demand Ratio
  
• Timing
  
• Today's financing
  
• Today's economic condition
  
• The buyer's perception of condition
  
• Location
  
• Normal marketing time
  

A comprehensive and thorough Market Appraisal will evaluate all these issues, as well as analyze all the current sales and competition of homes similar to yours. This will assist you in setting a price for your home at fair market value.

No matter how attractive and polished your house, buyers will be comparing its price with everything else on the market. Starting with an asking price that is too high can stigmatize your property and actually result a sales price that is less than fair market value. This occurs when an over-priced home is on the market too long and prospective buyers begin to think there is something wrong with it, even after you lower the price.

How will you know if your home is not priced properly? As time passes, you may observe some warning signs:

• If the Realtors are not previewing it, or if they preview and do not show it, they are eliminating it from further consideration for buyers.
  
• If it is being shown with no results, the buyers are finding better properties to buy and they are eliminating your property.
  

In either case, this is usually an indication that your home is not priced at Market Value.

This is why you should not choose a real estate agent only based on how they price your home. You should select an agent based on their professionalism, qualifications, dedication, and most importantly, on their ability to accurately evaluate the market value of your home.

Can you improve the market value of your home?

Yes, there are several things you can do to ensure that your home sells in a reasonable amount of time at an acceptable price.

• Improve the home's condition
  
• Offer good terms
  
• Improve the way the home shows
  
• Adjust the price