A homeowner is usually not the best judge of the value of his or her home. There are too many emotional ties to the home for the owner to be unbiased. Also the owner knows the amount he needs or wants from the sale and may not be objective.
Regardless of what was paid originally for the property and any improvements made to the home, the price is determined by what the market dictates at the time the property is put on the market. You may consider hiring an independent real estate appraiser. An appraiser has specialized training and experience. Do not rely on Central Appraisal District appraisals, as these are not always current and are prepared without viewing the inside of the home.
Another option is to hire a REALTOR®. Real estate brokers have the most current information about the market. This information allows them to know what properties similar to yours are selling for. Realtors will aid you in appraising your home by pointing out that the home is in a favorable location, convenient to transportation and shopping, or has a popular design or builder.
One consideration in pricing is determining what net you want from the sale of the property. Take into account the mortgage payoff and closing costs, but do not be tempted to set a high price to try to recoup some expenses. If your estimate of value is too high, some prospective buyers will consider it out of their reach. Also, frequent price reductions may cause buyers to wonder if something is wrong with the home.
If your estimate of value is too low, you will lose money you could have had. A price which is too low, may also be discouraging to buyers who are suspicious of bargain deals. You may be tempted to set a low price because you will be leaving town soon or you are afraid the wear and tear of the home will turn away buyers.