Setting the right price for your home can be a hit-or-miss experience – either you set it too high, or you set it too low. There are several factors that can affect the selling price of your home. Here are things you should consider to avoid the hazards of overpricing and under-pricing.

Market trends are like the weather. They constantly change based on several things like the economic climate or the demand for homes in the area. Avoid basing your property’s asking price based on what you paid for it sometime ago.

Review the pricing trends in your area. Zoning in on a specific area will help you determine the prices of the home in your neighborhood more accurately, which can then affect the price of your home. Be on the lookout for homes recently sold in your area that roughly share the same features and amenities as your property. You can also ask your real estate agent to review records of selling prices from three months, six months, and even a year ago to gain a clear picture.

Understand your market. Is your property located in a desirable neighborhood? Does your area have many homes available for sale? Is it mostly made up for new constructions or older homes? Consider these factors to be able to set a competitive and reasonable price for your home. Your real estate agent should be able to provide a comprehensive market analysis for you to examine to be able to price your home properly and competitively.

Get an opinion from a professional appraiser. To get an accurate range of the value of your home, the best course to take is to hire a professional appraiser. Well-versed in his craft, he’ll inspect everything about your home to get a clear picture of its current value.

The first price is the best price. It’s a no-no to set your property’s asking price high on its first few days in the market, and then lower it on the following days. According to Realtor.com, the more days your property spends on the market, the lower your profits will be.