“What is My Home Worth?” How Real Estate Agents Help with Pricing

One of the first questions people ask when getting ready to sell is “What is my home worth?” Setting the right asking price is crucial. Price it too high and it could be left on the market with no buyer in sight; ask too little, and you’re leaving money on the table. 

Calculating the best listing price isn’t a simple math problem. It takes into account the home’s features, local market statistics, and buyer tastes and trends. While it’s not impossible to come up with a reasonable ballpark price on your own, it’s best to ask a professional. A real estate agent has the knowledge, experience, and access to the data to master this balancing act, coming up with a number that will help the house sell quickly and maximize profits.

The ease of browsing online listings and taking virtual home tours can make some people feel like they can handle other parts of the buying process themselves, too. Several online tools promise to calculate what your home is worth. These estimators use your address to pull public data, information about your local housing market, and the value of a few comparable houses in the area. But an algorithm can only crunch the data it’s given, and there’s more to it than that. It isn’t always a good replacement for a live person who can see the house for themselves. 

A real estate agent has up-to-the-minute data resources, plus their own experience and intuition to draw upon. An app can’t see firsthand the quality and craftsmanship of renovations, won’t know the unique perks of a specific neighborhood, and hasn’t talked to buyers who are looking for exactly what your house has to offer. Real estate agents know what sells and what people are willing to pay—beyond just crunching the numbers.

Lacking the human element, these value calculators are often inaccurate. One source found that website estimates can be off by as much as 5 to 7 percent. If the house’s value is $350,000, this means the suggested asking price could be up to $24,500 too low or too high. A realtor can find a realistic price point.

The process used by real estate agents to discover a home’s value combines data analysis and their personal insights and experience. While each company, office, and individual agent may have their own methods, these are the typical steps:

1. First Impressions

Simply by walking through the house and learning about its details, real estate agents can get a rough sense of a home’s price range. They will consider:

• Size and layout:  The number of bedrooms and bathrooms, storage space, overall flow, and total square footage, as well as efficient use of the space, will affect the price. For example, laundry that’s located near the bedrooms is becoming increasingly desirable.

• Curb appeal: What will buyers see when they pull up to the house? The paint and siding, landscaping, and outdoor lighting, along with the lot size, will factor into the home’s value.

• Condition: The age and any shape of the HVAC system, roof, and foundation make a difference. Also, the general upkeep of floors, appliances, and fixtures. The decision to make repairs or to sell the house as-is can make a huge difference in a realistic asking price. 

• Features and upgrades: In a 2025 survey, housing experts listed buyers’ priorities when searching for a home. Among the most sought-after features were storage solutions, high-quality finishes, outdoor living space, a dedicated home office, and a laundry room. These, as well as anything that makes the home stand out, such as a swimming pool, backup generator, smart technology, heated flooring, or a yard sprinkler system, can increase the asking price.

Taking all of these things into account helps a real estate agent gauge how the house measures up to others in the area, which is an important part of coming up with an asking price.

2. Comparative Market Analysis

A multiple listing service (MLS) is a database of homes on the market. Realtors use the MLS to prepare a comparative market analysis—often called “running comps”. 

They look up homes for sale and recently sold in the area that are similar to yours in:

• The age of the home
• Number of bedrooms and bathrooms
• Square footage
• Lot size
• Amenities

The asking and final sales prices of these comparable homes give the real estate agent a baseline value in the local market. From there, they can adjust up or down for differences such as a larger lot, a fenced-in yard, an unfinished basement, an extra bathroom, etc.

3. Factoring in the Local Market

Knowledge of the local market is essential. Agents are familiar with the selling points of your neighborhood like proximity to large employers, schools, shopping, restaurants, and recreation. Not only will this help them come up with a price, it is useful in how they decide to market the home.

They will also gather data about supply and demand and buying trends in the area, and how many competing houses are on the market. Current market momentum is illustrated by the number of pending sales and how quickly houses are selling. And expired listings are a good indication that those homes were overpriced.

And here in the Midwest, even the time of year can impact sales prices. Homes here in the St. Louis region typically sell for less during the winter months than in spring and summer.

4. Considering the Seller’s Goals

As a seller, your objectives and reasons for the move can be an important indicator of asking price. For example, if you need to sell quickly to start a job in another city, it might make sense to price the house slightly below market value. 

But perhaps you’re not in a rush. If you’re selling a home you inherited but don’t occupy, or you’re downsizing and getting rid of your stuff will take a while, you might choose to maximize your profits by pricing it a bit higher. 

5. Strategic Pricing and Marketing

The realtor will study all of the information in numbers one through four. They may also talk to their colleagues for input about the houses they are selling in the area. This will help them come to a price that:

• Is competitive with similar listings in the area
• Is likely to attract the attention of both buyers and agents
• Is realistic
• Leaves room for negotiation

6. Reassessing and Adjusting if Necessary

Housing markets are always fluctuating. Economic conditions, current interest rates, and inventory can change quickly. For this reason, real estate agents will review conditions, watching for shifts in the market and the asking price of additional comps as they go up for sale. They’ll also monitor how much traffic the house gets during an open house and listen to feedback of those who stop by to take a look. Sometimes, a price adjustment might be necessary to stay competitive.

Setting a fair list price makes life easier for everyone involved. If an unskilled or overzealous seller estimates a home’s value too high, the house might not sell for an extended period. Houses that have been on the market for more than 30 days often go unsold for much longer. Buyers’ agents and buyers might think something is wrong with the house, and a drop in list price will need to happen (sometimes below the market value), to sell the house.

On the other end of the pricing spectrum, some sellers want to price the house below the market value to generate interest from buyers. They may hope to start a bidding war, thinking that will drive up the price in the end. This strategy can work during a seller’s market. Other times, it backfires. And the lower price up against comps might lead buyers to think the house is only worth the list price.  

Determining the asking price when you’re ready to sell is complicated, and you don’t want to make a mistake. Why not leave it to the professionals? When you ask your real estate agent, “What is my home worth?” their answer will be realistic and based on accurate data and their knowledge of the market.

The agents at Berkshire Hathaway HomeServices Select Properties are ready to help. Contact us today.