Determining value
The right price is usually within 5% of the market average.

• Compare your home to similar houses in the neighborhood that have sold recently
• What makes your home stand out more than other on the market. Like anything a buyer is comparing what they can get in one home, compared to the other for the price
• Weighing out how much you might want to spend on fixing up the cosmetics of the house to enhance the marketability against comparable homes

Overpricing
If you price your home to high you may lose potential buyers

• Buyers may feel they can get more home for a better price after seeing what they can get at yours
• Potential buyers that are just below your asking price won’t even bother viewing the property
• The buyer that is willing to pay over market value, may have difficulty getting financing because the house will not appraise out
• If your home stays on the market too long than buyers may feel something is the matter with it
• To make up for any time you have already lost because it was overpriced to start, you may know lower it under the market value just so that it will sell

Under pricing

• Doing this you may lose money
• If you are not interested in the money but need a fast sale than you may consider a bargain price to attract prospective buyers
• With an under priced home you will have many buyers viewing the property and a sufficient amount of offers, but you will not get the best value for your home.