Pricing your home is an art not a science.  Achieving the optimal price is the result of both objective research into similar properties and instinct in determining how much a buyer will be willing to pay for your home.  The correct price will attract showings, which will generate offers.

The  unfortunate  fact  is  that  price is  the  number one factor that most homebuyers use when determining which properties to view.  It is also important to remember that although you and your Realtor establish the asking price, the selling price is determined by what a buyer will pay.

The Correct Price Will:
• Result in a quicker sale, with less inconvenience to the seller
• Expose the property to more buyers
• Increase Realtor response
• Generate more ad calls
• Prevent your listing from getting stale or “shop worn”
Typically homes that sell more quickly, sell closer to or sometimes over asking price.

Some Common Reasons for Overpricing:
• Over improved property
• Original purchase price too high
• Desire “negotiating room”

Overpricing Pitfalls:
• Most of the activity on your home will occur in the first few weeks. Pricing a home properly creates immediate urgency and excitement in the minds of buyers and agents. 
• There  is  a  pool  of  buyers  who  have already seen  most  available homes  in  their  price  range and are now only waiting for new listings or price reductions.  A buyer that has been waiting, may fail to see your home if it is priced too high.
• Sometimes, a price reduction may be too late, as interest by both buyers and Realtors may have waned.
• Buyers and their agents are very aware of the length of time on the market; the most common buyer question continues to be: “How long has it been on the market?”  Often, buyers are reluctant to make an offer on a home that has been on the market for “awhile” believing that there is something wrong with the home.
• Unfortunately, overpriced listings frequently help you to sell your neighbor’s reasonably priced home, making it appear that their home is well priced. 

The Role of a Real estate Agent in Pricing:
• Provide  you  with  a  comparative  market  analysis,  which  is a comparison of  recent homes with similar  amenities  that  are available (your competition), in escrow and sold.
• There is no “exact price”; your home is worth what a buyer is willing to pay.
• The market determines value; together you and your agent determine asking price. 

Realtors have no control over the market, only the marketing plan.  After the listing agent makes a pricing recommendation, the seller determines the asking price.   Some inexperienced agents may try to “buy your listing”, never select an agent based on their recommended asking price; select an agent based on their marketing plan. If you list with an agent who has provided you with an unrealistic asking price, they will only pressure you for a price reduction after your listing contract is signed.