For this reason, it may be beneficial to pay for a professional appraisal of your property. Appraisers also have access to recent comparable home sales and use up to three methods of arriving at a fair market value for your home. When a buyer seeks financing to purchase your property, they will need an appraisal to establish value in the eyes of the lender. So it doesn't hurt to have that value established in the beginning. Showing a buyer a professional appraisal of the property can give the buyer added comfort that your asking price is reasonable.

You can expect to pay $300-$500 for a professional appraisal. Due to the cost, many home sellers try to establish a fair value on their own. If this your preferred method, consider the following.

What are similar homes selling for?
Other homes that are for sale in your neighborhood are probably your best resource for determining value. Visit these houses and gather as much information as you can about the homes and then compare those homes with your home. Compare square footage, number of bedrooms, number of bathrooms, lot size, and any unique features. Seeing what similar homes are selling for will give you a good idea of a price range you can expect for your home.

Search the Internet
Most states require that property transfers be published in a local newspaper, so you can easily search the online archives of recent home sales in your area. You can also search real estate websites for homes that are comparable to yours to see what they are listed for, but remember, this does not give you knowledge of what the properties actually sold for.

The author has been involved in several online real estate businesses, including FSBO3k.com - one of the leading for sale by owner websites in the United States.