The simple answer is that it’s worth what a ready, willing and able buyer will pay for it.
So how do I know what a buyer is willing to pay?
The best analysis of your property’s current market value is from a Realtor or appraiser. They know the market and understand trends in the local market because they look at properties and analyze the values every day. Not only do they have access to the statistics of comparable properties, they also have the ability to critically analyze the differences in the quality of finishes, amenities, land, characteristics and the value of the location of the property.
Overpricing a property can result in fewer buyers looking at the property, leading to a longer time on the market. In this situation, a property may sell at a lower price than if it had been priced correctly from the start.
Underpricing a property can create a higher demand the property may sell more quickly, but it may also leave you with a smaller equity.
Correctly pricing a property gives you the best exposure to the buyers, and allows you to maximize your equity, and sell within a reasonable time frame.