An agent I know in Colorado often quotes Consumer Reports, "Do not list with the Realtor who will list your home at the highest price."

When you sell your home, the market itself is what will determine a fair price – not your corner lot or the designer paint. When that agent who lists your home too high comes back after some time to pitch a lower price when the house hasn’t sold, you may recognize that your Italian tile really didn’t matter. If it’s too high, it’s too high.

The Better Business Bureau offers good advice for people considering selling.  In addition, Robert Hanley of Active Rain also blogs (this is his third part in a series) about setting a price.  Probably the most important statement is that home sales like an other consumer product, is valued via supply and demand.  If there are a gazillion homes in your town that are in perfect shape (like yours) but priced for less, you likely won’t get your price.  In fact, you may be viewed as someone who is not motivated to sell and they’ll pass you up completely.  Or someone could tour your home to demonstrate how not to do it.

On the flip side, pricing too low can damage an entire neighborhood by causing property values to plummet.  I saw this recently when an agent in my own office listed a home for $109,000 when it should have been $129,000 – $134,000.  My friend who lives in the neighborhood was considering selling her home, but now can’t until prices come back up.

So when you get ready to sell, look carefully at the market analysis.  Don’t set the price too high. Don’t set it too low, either!  The price truly is the hardest part!