This is by far the most critical factor in the sale of your home. Your agent will advise you on local market value based on comparable homes sold in the area recently, community ammenities, schools, street traffic, closeness to highways and public transportation, and WOW factors. The negetiator's rule of thumb in selling is: the market value of your home is wholly determined by what A buyer will pay.
To know what a buyer will pay, first it's important to realize a few things about the buyer.
A house generates the most interest within its first few weeks on the market. Taking the approach of "Let's put it on the market high and see if we get any bites" is often a strategy that backfires. Buyers seek out properties that are perceived bargains and meet the majority of their buying criteria. Being realistic about pricing your home according to market value will directly affect how quickly your property will sell, and for the price you want.
Remember, the longer a property sits on the market the more questions they'll ask of "why hasn't it sold". Property that has the "something fishy" perception is more likely to have a low bid offer than asking price offer.
