"What’s my home worth?"
Here’s the most honest answer you’ll get: Your home is worth what someone is willing to pay for it in the CURRENT market and over-pricing a home is the number one mistake made by both Agents and FSBO Sellers alike.
There are two strategies you can use in pricing your home.
The first strategy is to look at recently sold, comparable properties in your area. This can be difficult as in some areas sale prices of properties are not public record, nor is access to data on sold properties readily available to FSBO Sellers. There are also issues with the fudging of data on "recently sold" properties and what a home sold for 3 months ago may not be anywhere near what it would sell for today, as the real estate market is constantly changing.
The second strategy you can use is to approach pricing from a competitive standpoint. At any given moment there are a limited number of Buyers in the market looking for homes within a certain price range. While countless variables influence a Buyer into purchasing one home over another, generally speaking Buyers want to get "more" for their money - a better location, more square footage, more features, a larger lot, etc.
Your property is COMPETING with nearby listings in an attempt to appeal to those Buyers currently looking at homes or who will be looking at homes in the very near future. If there is one Buyer set on purchasing a home in your neighborhood or area, all else being equal, your home has to appeal to that buyer MORE than the other homes in the neighborhood.
So, what makes one home more appealing than another? There is no set answer to this question as every Buyer has different tastes, needs and wants in a property. One property may be found more appealing than another based square footage, unique features like a Jacuzzi or greenhouse, lot size, the overall look and feel of the home, the layout or any number of variables. As a Property Seller you do not have control over how appealing your property will be to any specific Buyer based on these variables. The one variable you do have control over, however, is PRICE. All things equal, Buyers focus more on properties which are "well-priced", or priced better than competing properties in any given price range.
As a FSBO Seller you have more room to more aggressively price your home BELOW other homes currently on the market, which you are competing with for Buyers.