With today’s tough economy, it has never been more important to properly price your home. After all, if you price your home too high, there is no way you will ever get it sold. At the same time, if you price it too low, you will take a major financial loss – particularly since the current economic conditions are likely causing you to sell the home at a loss already. So, when it comes to pricing your home, it is important to keep these 5 tips in mind in order to come up with the best price possible.

Tip #1: Get it Appraised
Working with a certified appraiser will help you get a solid idea of what your home is actually worth. Ideally, you should work with an appraiser that is familiar with your particular market, as prices vary from market to market. By using this information as a starting point, you will be better prepared to determine a price that is fair.

Tip #2: Know Your Local Market
In addition to consulting with a professional appraiser, it is also important for you to have an understanding of your local market and the prices that homes are going for within that market. You also need to have an understanding of the type of demand that there is for your type of home within your market. Your real estate agent should be able to help you look at trends within your market, but you can also use the Internet or even take a look at your Sunday paper to gain a better understanding of your market.

Tip #3: Understand the Buyer
In addition to understanding your local housing market, you also need to get a better idea of who is buying in your market. If you live in a growing area that is attracting a lot of new residents, you will be able to command a higher price than if you are in an area that is not quite so popular.

Tip #4: Developing a Strategy
Based on all of the information that you have gathered, it is time for you to create a strategy to help get your home sold. If property prices are dropping in your area, you might want to consider dropping your price ahead of time. For example, if prices are dropping at a rate of 1% per month, you might set your price at 3% less than its value in order to gain a competitive edge over other properties in the area.

Tip #5: Look Beyond Your Emotions
Finally, pricing a home can be difficult due to the emotional attaching that you feel with the property. The memories you have built in the home and the price you paid for the home are not important to potential buyers. Be objective when pricing the property so you come up with a price that is fair for everyone involved.

Eric Bramlett is the broker & co-owner of One Source Realty, a full service Austin real estate company. Eric currently works with select buyers & sellers and helps his agents continue to succeed. Eric manages multiple niche websites, including his Steiner Ranch real estate website.