How is the price set?

The real estate market is continually changing, and since these market fluctuations have an effect on property values it is imperative to price the home based on the most recent comparable sales of similar homes in your neighborhood.   This is called a comparative market analysis which you can do yourself, request one from an experienced real estate agent or hire an appraiser.  This analysis provides the  market data such as number of homes sold, age, size of home, number of bedrooms and baths, original asking price, sales price, days on the market as well as the information on homes currently for sale that would be competition to the house you are selling.  The next step would be to view as many of these homes as possible (inside if possible but at a minimum the exterior) to get a clear idea on their features and attributes versus the home you are selling.  The last step is to aggregate the data to come up with a price that the data indicates would be a fair price to sell the home in a reasonable period of time.   Do not fret too much over this decision – just make the best educated guess you can.  Then closely monitor the feedback, showings and activity so you can quickly adjust the price of the home if it becomes clear that you are overpriced.