"If you're too low, you might sell it right away. But you would have perhaps lost hundreds of, if not a thousand, dollars," says Nerad.
A very low price also limits your ability to negotiate with potential buyers, Kovach says. After all, once you set the price, there's nowhere to go but down if a buyer wants to haggle.
And a too-low price can send the wrong message about your used car to buyers.
"Potential buyers will think there's something wrong with your car and not even bother taking a look at it," Kovach says.
There are a couple of ways to go about making sure you're charging a fair price for your car. One is to get a quick value estimate on a website such as Edmunds.com or KBB.com that use market data to determine what people are paying for cars like yours.
Or you could browse auto ads online at sites such as Cars.com and AutoTrader.com to see what sellers of similar used cars are asking in your area. If your price is much higher or lower, you may want to go back to the drawing board.