The value of your property is ultimately the price buyers are prepared to pay for it.
How to value your property?
Estate agents will value your property for free in order to get the opportunity to market your property. Make sure your property is looking its best before valuation to get the highest possible price estimate. Be aware that some agents may give you a high valuation in the hope that you will market the property through them, but overpricing may result in lack of interest from prospective buyers. Other agents may give you a low valuation so they can sell the property quickly. By talking to a few agents you should get a fair idea of what your property is worth.
You may also want to view a few similar properties in your area in order to get an idea of how much your property should sell for.
Determine your asking price
The asking price will normally be the highest price you expect someone to pay for your property. The asking price is usually negotiable and sellers will normally settle for an amount below the asking price, unless there is a lot of interest in their property in which case they may sell for the asking price or even above the asking price. Broadly speaking, if you wish to sell within a few months, you should set your asking price around 5% higher than the price you would accept. Most buyers will want to knock down your price to feel they are getting a good deal, but if you go over 5% they may be put off by the high asking price. Your asking price will depend on your circumstances – a seller hoping for a quick sale will set their asking price at a lower level than a seller with greater holding power. You may also decide to revise your asking price after viewings have started – if the property is not generating any interest it may be best to lower the asking price, as a property which has been on the market for a long time becomes even less desirable to buyers who start wondering why no-one has bought the property for so long.