There is a saying in real estate that “There is nothing that price won’t fix.” Basically this means that when trying to sell your home, the most fundamental element is price.

Over the last 7 years, prices have increased at a huge rate, and every seller wants to sell their home for a little bit more than their neighbor. This is to be expected in a strong real estate market.

However, a problem arises when a seller tries to list a home way above all other comparable listings in the area. In many instances a seller will say, “Let’s just list it high and then wait for offers” with the expectations that buyers will naturally negotiate the price down anyway.

This technique is not recommended at all. When a buyer sees a house priced way above its comparable market value, in most cases the buyers won’t even bother to visit. If they do visit they will simply think that the sellers are being unreasonable, or greedy and they will either wait for the asking price to be reduced or forget all about the home.

Furthermore, by listing a property way above comparable values you are making all other listings in the area look comparatively cheaper, and you are thereby driving buyers towards the other listings in your area. Your neighbors will certainly be happy… your high price is actually helping them sell their home.

Don’t expect buyers to simply make an offer. Even if your agent tells them that you are open to reasonable offers, or that you are willing to lower your price, the buyers will be put off and will simply look for another listing in your area where there is less negotiating issues.

In summary, my advice is to list your home at a reasonable price… a bit higher than your neighbor if you would like, but be reasonable, or expect your listing to linger for months with very little buyer activity.