Sellers often receive the most buyer inquiries within the first several weeks a house is placed on the market. When you first list your home, there is likely to be immediate interest from potential buyers and agents. As time passes, and more properties come on the market, this initial burst of interest will fade. So it is important to price your home correctly when you first list it.

If you overprice your home with the idea you can drop the price later, you are hurting your chances of selling during this first wave of buyer interest. Keep in mind that these buyers have probably done their homework and will likely know how much your house is worth.

Pricing your property too low is just as harmful. That’s because buyers who are looking in a specific price range may overlook your home due to the low price tag and assume it will not fulfill their needs.

There are two very useful tools you can use to set the price of your home: a property valuation and a professional appraisal.

Property Valuation
The ForSaleByOwner.com Property Valuation Report, which is included with most packages, will suggest an approximation of your homes market value, based on recent sales data. You will also receive a complete report of similar homes that were sold recently, including purchase price and closing dates, which will help you set the sales price of your home. Access to Property Valuation Report can also be found at http://www.forsalebyowner.com/appraisal

Property Appraisal
A professional appraiser visits your home and estimates its value based on the condition of your home and prevailing market values. You will pay a higher fee for a professional appraisal, which varies by region, and generally ranges between $250 and $500. You can do a search for licensed property appraisers at www.forsalebyowner.com/appraiser.

Is a Professional Appraisal Necessary?
A professional appraisal is necessary before closing, if your buyer is obtaining financing, their mortgage lender typically will mandate that the home is professionally appraised to ensure that the buyer is not paying too much. Because of this, the buyer generally pays for the professional appraisal. As a seller, you always have the option to purchase one to use as a pricing tool when you first put your home on the market, however, the buyer will most likely need to have a new appraisal done prior to closing.