Once you’ve decided to sell your home, the second step is usually setting your asking price. You should strive for a balance between generating offers and receiving top dollar.

Your chosen real estate advisor should perform a Competitive Market Analysis (CMA) to produce an estimate of your home’s “fair market value,” or that price that educated buyers will pay based on listings and sales of homes similar to yours. The agent will not establish the price, but only provide the information you need to make that decision yourself.

In a hot market, you have the advantage, but would still want to avoid overpricing, which is always unproductive. However, in a neutral or buyers market, you’ll have to be particularly cautious in your approach to setting a price.

In soft markets, price reductions become more common, as well as fewer offers and longer listing periods. Often in slower markets, establishing too high of a listing price will result in a much lower sales price as values decline and you may find yourself chasing a declining market. During your listing period, your agent should also keep you advised on any market activity near your home and in the immediate communities. Be prepared to make the necessary adjustments as changing market conditions dictate.

Have a third party, like your agent, help you see your home as a commodity, with positive and negative selling points. Price your home objectively and competitively, be prepared to negotiate to reach an agreement with buyers, and exercise patience as you prepare your move.