The price is set by the market. Using any other method to price your home will create failure. The price of active listings in your neighborhood may not be an indication of property values. Recent closed sales are the best comparable information to use for determining list price.
I know that you may need a certain amount of proceeds from the sale. Your debt on the property may exceed the value, but neither of these scenarios will cause a buyer to pay over market price for your home.
The best way to find out what the market value of your home is to get a local Real Estate professional that lives and works in the area your home is located. Make sure this Realtor has a reputation for being upfront and honest. I will often ask a seller, when do you want me to start telling you the truth?
Look for an agent that knows the value of a first impression. Not your first impression of the agent so much, but the value of making a first impression with your home and the price.
What sign do you want to have in front of your home 90 days from now, JUST REDUCED or SOLD?
Don’t be surprised if you sell your home quickly using this advise, that’s the best thing that can happen. Homes are losing value as they sit on the market, so in this market time is money (your money). If you don’t have a written offer on your property within the first 60 days, you have made the mistake of overpricing. Something will need to change, and it’s definitely going to involve money (your money). You are either going to lower your price, or increase the value of the property to get it sold. The problem with increasing the value is, it will cost more than you will receive in sales price increase.
I do recommend getting your home in clean and safe condition. I recommend things like carpet cleaning or replacement, painting, roof repairs, termite inspection, landscaping (selective) and professional cleaning.
If you have been living in your home for the past few years, you probably don’t have the ability to see the property through the eyes of today’s buyer. A good Realtor will have the experience and inventory knowledge to direct you in what needs to be done.
I look at all of the inventory and study the market. I can honestly tell you what price your home will need to be to sell. I can show you the comparables, but my experience will tell me the value before I even look at them.
It’s like magic, when a property is clean and ready, priced correctly, and easy to show, it sells.