STEP 1: Abandon your personal point of view. Step out of your shoes and be a shopper. How much would a buyer be willing to pay for your home? Buyers do not care how much you paid for the home, how much you need from this home to purchase the next home, or how much time and money you have invested in hardwood floors or landscaping.
STEP 2: Get a CMA (comparable market analysis) with an accurate analysis of the homes that are comparable to your home that have sold in the last 6 months. This is normally done with price per square foot. Active home prices can be considered, but they are not a good gauge for the sales price. They are active and not sold for a reason. Remember that you want an honest opinion; not an agent that will suggest a flatteringly high price in order to get your listing only to demand a price reduction in 30 days.
STEP 3: Consider market conditions. Are homes selling quickly in your neighborhood? Are prices rising or declining? Are you selling in a buyer’s market or a seller’s market? Will your home be on the market in the spring home-buying season or in the dead of winter?.
STEP 4: Some buyers are looking for more than just the price. Can they move into the home when they need to? Can you, the seller, finance the home? The more creative and flexible you are in meeting a buyer’s needs, the more success you will have in selling your home.
Do not be tempted to figure what you paid for the property, add a healthy markup, and start packing!