Your home is worth what a buyer is willing and able to pay for it.

Real estate is one of the best examples of the free market. A house is placed on the market and buyers make offers on it. A buyer makes an offer and the seller is free to accept, counter the offer, or reject it.

There are some guidelines. Buyers are influenced by what other buyers have paid for similar homes and by what they have to pay for what they want. That's why, when a real estate agent helps you determine the asking price for your home, he or she will research the market and see what buyers are paying for homes like yours and what's currently on the market. That information gives you a starting place in determining an asking price.

From this starting place, the real estate agent will take into consideration your particular house. If it's in top condition or a little nicer than most in the neighborhood, it may demand a higher price. If there is something about it buyers might not like, it may be worth a bit less. If there are not many competing homes on the market, it may be worth a bit more. Your real estate agent will help you position your home for the market to help you get the best possible offer for your neighborhood.

Competitive pricing is a key to getting the best price for your home. Today's buyers are very savvy about home prices. They have a good idea of what other buyers are paying for houses in a neighborhood. If a home is competitively priced, it will attract the attention of buyers.

It is a mistake to put a house on the market at an inflated price and hope the market catches up to it. If a home is markedly overpriced, buyers won't even come to see it. It is better to have several eager buyers competing for your house and driving the price up than to have one buyer trying to get the price down. Follow the advice of your real estate agent in choosing a competitive asking price.

In today's market there are often more buyers than there are homes available. Buyers sometimes have to compete for the most desirable homes. It stands to reason that if your home is made available to as many buyers as possible, you have a better chance of a higher offer. Ask that your house be placed on multiple listing so all the local real estate agents know about it and can show it to their buyers.

If you just want an idea of what your home is worth, check one of the Internet sites that reports home sales and see what's happening in your local market. Then look at coldwellbanker.com and see the asking price of similar homes in your neighborhood. A combination of the two should give you a general idea.

Remember, there is a lot more to selling your home than setting a selling price. You will need a real estate professional to help you market your home, evaluate offers, and manage the transaction to closing. When it's time to maximize the investment in your home, call your local office of Coldwell Banker.