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The Conventional Wisdom when it comes to selling a home and setting a List price is that you can always go down, but never come up if you price it too low to begin with.  Homes priced 15% or more above Market Value will only attract 10% of the potential buyer pool at any given time.  Lower it to 10% of Market Value and that number goes up to 30% of the buyer pool.  As I talked about in my last post, homes that are priced too high attract fewer buyers which results in less showings and no offers.  As the Days on the Market ticker begins to increase, the home will most likely have to be adjusted in price below market value to be sold.     

The better option is to price it at Market Value to begin with and attract 60% of potential buyers.  What about the other 40% of the pool?  As you can probably guess, they are looking at REO, Foreclosure, and Short Sale homes that are priced 10-30% below market value.  60% of the buyer pool is much better than the alternative of pricing above market.  Properties priced at market value generate more buyer interest resulting in more showings and some offers coming to the table. 

Do yourself a favor - price your home at Market Value from Day 1 based on an accurate Current Market Analysis (CMA) and see more showings, more offers, a faster sale and more money at closing as a result!