A real estate agent sets a list price for a home by performing a comparative market analysis (CMA). A CMA is an evaluation of similar, recently sold homes (called comparables or comps) that are near a home intended to be bought or sold. Real estate agents use CMAs to help their clients determine a realistic asking price for their home.
If a home is priced too low, it may sell quickly, but the homeowner may not get the full value of their property. On the other hand, if a home is priced too high, it may sit on the market for an extended period of time and may eventually sell for less than its true value.
A properly priced home should take a reasonable amount of time to sell. The exact amount of time will vary depending on the local real estate market and other factors such as the condition of the home and the time of year. However, in general, a properly priced home should sell within a few weeks to a few months of being listed on the market.