Many home sellers, especially those that have sold homes before in soaring markets, want to list at a price greater than the market value. They usually say “we can always come down.” Not a good idea and this is why.
Lets take a look at what happens from the time the home is listed. When entered into the MLS, the property information goes out to multiple websites and is sent to buyers with matching criteria. The problem with the home being overpriced is that those buyers know it. They have access to accurate home value sites and they have more than likely seen other properties in the area at lower prices. They are going to wait until your price comes down. So, the best opportunity to get the most money in shortest time is lost.
Now we are on the market for 30 days and you decide it is time to drop the price. Remember it is a declining market and one more factor is coming into play, more inventory. You see more than twice as many homes are coming on the market than are being sold. Your home is worth less than it was when it was originally listed, it has time on the market (not likely to get full price offer) and you have more competition.
The moral of the story is, in a declining market you may want to list your home 5-10% below current market value, if you really want to get it sold in the shortest time. Second that will more than likely get you the highest price as well (may create a bidding competition). In this market, highest list price does not equal, highest net price.
For more on pricing and a free report on the 10 questions to ask before you choose an agent, go to http://TheWhittakerTeam.com