What homes are worth boils down to “what the market says it’s worth.” A home “value” also depends on who you ask: there's the price owners would like to get, the price buyers would like to offer and the point of agreement between buyer and seller that actually results in a sale.

In considering home values, several factors are important:

The value of your home relates to local sale prices. The same home located elsewhere could have a different value.

• Sale prices are a product of supply and demand. If you live in a community with an expanding job base, a growing population and a limited housing supply, you have a seller’s market, and home prices will likely rise. Alternatively, if the local community is losing jobs and people are moving out, then you'll likely have a buyer's market.
• Listing prices should not be inflated. You should be strategic in setting your listing price and be sure not to overprice your home, because you may not be able to sell it. The longer a home is on the market, the more “stale” it gets, and the more likely that buyer agents will tend not to show it and that buyers will think there is something wrong with the home because it is not selling. If you overpriced your home, you many eventually have to bring the price down to even less than what you could’ve got if it was priced properly in the first place. And you will have lost the initial flurry of interest that new listings generate.
• How quickly the owner needs to sell can affect sale values. Owners who " must" sell quickly will have less leverage in the marketplace. Buyers may think that the owner is willing to trade a quick closing for a lower price - and they may be right. Conversely, owners who do not need to sell quickly may have more marketplace strength.
• Sale prices are not based on what owners " need." When an owner says, " I must sell for $300,000 because I need $100,000 in cash to buy my next home," buyers will quickly ask if $300,000 is a reasonable price for the property. If similar homes in the same community are selling for $250,000, the seller will not be able to sell for $300,000.
• Sale prices are NOT the whole deal; look also at terms and conditions. Which would you rather have: a sale price of $200,000, or a sale price of $205,000 but where you agree to make a " seller contribution" of $5,000 to offset the buyer's closing costs, pay a $2,000 allowance for roof repairs, fund two mortgage points, repaint the entire house and leave the washer and dryer?

Setting the list price for your home involves evaluating various market conditions and financial factors. During this phase of the home selling process, your REALTOR® will help you set your list price based on:

• Pricing considerations
• Comparable sales
• Market conditions/ Offering incentives
• Estimated net proceeds