This is one of the biggest obstacles to selling real estate in a timely manner. Too often a home seller will place emotion ahead of logic in determining the selling price of a home. Perhaps the prospective seller has the impression that the market is ripe in their area or that the home is worth far more than it really is.

The bottom line is that there is only one way to determine the true value of the home and that is to actually sell the home. After all, it is only worth what the open market will bear. You can have agents come in and perform a market analysis; you can even go out of pocket for an independent appraisal - which is not a terrible idea, by the way! It really doesn't matter which method you choose, the bottom line will always be that the home is only worth what a person is willing to pay today.

All too often we see and hear of homeowners pricing their homes above perceived market value in order to bring the price down to be in line with current pricing during the selling cycle. This is, generally, a mistake.

When it comes to selling your home, which is most likely your single most valuable asset or it represents your largest investment, it is always better to apply the old adage of measuring twice and cutting only once. You will not likely get a second chance to sell the home again.

Some other things to consider are the carrying costs and the time value of money. I have seen investors, in particular, buy a piece of property with the intention of flipping it for a quick profit. Unfortunately, as in many real estate investments, there are often unforeseen expenses or delays that could adversely affect even the best laid plans.

One such investor felt that it would be best to price the home above the market for a couple of weeks and then, slowly and gradually, bring the price down with the intent of selling at the market price. This investor would have been better off pricing the home correctly and selling it much sooner. When you consider the aforementioned principle of the time value of money combined with the carrying costs you can easily see how quickly a good investment can turn into a worrisome or even, a bad investment.

Here is a little food for thought:

If you price your home correctly and you save 100 days of selling time that means that you could, theoretically, have your money invested elsewhere working for you for 100 days --- or more. It means that you would not have the carrying costs for 100 days --- or more.

Some people say "location, location, location" and yet others say "timing", I say neither. It should be pricing and "time in" the market. If you have the luxury of waiting out the market to get your price then you are better off not putting it on the market actively until you feel that the market will bear your asking price. If you insist on putting it on the market now the chances are that it will not sell in a timely manner and will become "stale" to the Real Estate agents in your area.

Take the time and use the resources available to you in order to price your home correctly, based on what the market will bear rather than on emotion. Spend a few dollars on an independent appraisal and while you are at it, get a qualified home inspection. Both things should cost you well under $1,000 but will save you considerably in the long run. There will be no question, for the prospective buyer, when you have an appraisal and home inspection in hand, that the home is not worth what you are asking for it!