One of the most difficult tasks involved when selling your home is pegging it at the right price. If you price it too high, it will not be too attractive to buyers and remain in the market for a significantly long time. If you price it too low, you may be able to sell it quickly but you won’t get the right value for your property. Setting the right price is really of extreme importance.

When you want to get the real value of your home, you don’t base the figure on how you personally feel it is worth, you need to consult experts of the field. There are two ways by which you can determine the true value of your home. One is by getting the property’s actual market value and the other is by getting its appraised value.

The market value is the amount that buyers would be willing to shell out for your home. It is also the term used to describe a price range by which similar properties go by. The appraised value, on the other hand, is what the bank thinks your property is worth and this is determined by a third party, an appraiser. An appraiser will use comparative market sales plus physical inspections of your property in order to give a proper valuation of your home. Unfortunately, it is not uncommon that the market value and the appraised value of the same piece of property are different.

When there is a discrepancy between the two (usually, the appraised value is much lower than the actual market value), you can get a third opinion. When you get an independent appraiser, make sure you present him with records of your upgrades. You can also present the appraiser with market values which you can get from local real estate offices. Show your home to the appraiser as you would to potential buyers.

The specified value of your home (either market value or appraised value) is dependent on someone else’s opinion. These matter but should not be the be all and end all of your pricing strategy. What matters is how much value the buyer puts on your home. If the buyer thinks that your home is well worth the amount you’re asking for, all the values pegged by the market industry and by the bank (appraisers) would not matter (that much).

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