Pricing your home properly is the most important decision you will make in listing your home for sale. Overpricing is the most common mistake that sellers make, and can be disastrous, especially in a market in which prices are decreasing.

See your home through a buyer’s eyes

Buyers are looking for a home that gives them a specific feeling, which can be related to layout, neighborhood, cleanliness, or how the home has been updated. The expensive tile entryway or whirlpool bath you’ve installed may mean more to you than to a prospective buyer. Don’t expect to recover all costs from amenities you’ve added. Some improvements will have more appeal and value than others. Take a step back, walk through your home as a prospective buyer might and be realistic about your home’s shortcomings. View your home as an investment and try and put your personal feelings aside.

View the Market Analysis with the proper perspective

All real estate agents prepare some kind of a market analysis when evaluating a listing price recommendation for a home. This information is invaluable, but should be viewed based upon market conditions. In the rapidly rising market we’ve seen over the last few years, it has been wise to pay more attention to the prices of available homes and pending sales to estimate value, as they would be more likely to show the current increases than properties sold. In a stable or declining market, the opposite is true, and properties actually sold will give you a much more valid estimate of your home’s value.