Pricing

Pricing ahead of the market is always in your best interest.  What does that mean?   In an up market, you can price higher than the market and be safe, but when the market is going down, it is a fatal mistake.  In a down market, it is best to price at or just slightly lower than the last sale.  Price too high, and you will end up following the market down, never quite catching up with it.  Overpricing leads to an increased time on the market and potential Buyers offer even less, assuming that you might be getting anxious.  During that time you have carrying costs each and every month. 

• Most activity takes place the first month the property is listed as Buyers who have been waiting for new listings to come on the market take a look at it.
• Your highest and best offer will usually be the first one.  The next one will often be lower still.  Work with the offer you have if possible.
• After the first month the only pool of Buyers will be those who are newly looking. 

Overpricing costs you time and money. 

• Potential Buyers don't even see it as it is out of their price range.
• Buyers shop by comparison.  Looking at your overpriced property just convinces them that a well priced one is a good deal and they buy it instead.
• Properties on the market a long time make a Buyer think something is wrong with them.
• Salespeople won't show it as they consider it a waste of their time when there are better values to show their clients.
• Time on the market increases.  Days on the Market are listed in the MLS.

A property generates the most interest when it first goes on the market.  Starting too high and dropping the price later fails to generate as much activity.  If the market is going down, you follow it down instead of being ahead of the market.