A well-priced home is the most important factor in marketing your property to receive the top price. Naturally, listing a property too low will preclude the opportunity for getting top dollar. On the other hand, setting the price too high discourages showings and tends to eliminate the most likely buyers from viewing the property.
The prime selling time occurs during the first few weeks of a listing going on the market. This is when buyers currently looking for a home in their price range will look and compare your home to others they have seen on the market. If the home meets the client's needs and the home is priced appropriately an off may be submitted. When an offer is placed on the market agents will want to get their clients int to see the home as soon as possible. But once again if you home is overpriced, you won't be getting the target clients in your home to view and purchase it and it will sit longer on the market.
When it sits longer on the market a few things may happen. Price reductions will have to take place to make your home more desirable and maybe getting previously interested parties back through the door. Or the home may sit and sit on the market which could potentially get a party through the door that believes you are willing to take a lower than expected offer.
Don't miss your price marketing period by setting a price higher than justified by the Comparative Market Analysis (CMA) or recommended by the agent. If it is priced correctly, buyers will make an offer quickly in order to beat out others who also may be interested. If you do have a lot of showings without an offer, this may indicate a price outside the market.
An overpriced home runs the risk of selling for less later. You do not want your property to become "stale" as it causes buyers to question its suitability. When this happens you often will end up selling for less than you would have had it been priced right from the very beginning.
A brand new listing is exciting, gets shown more, generally SELLS FOR A HIGHER PRICE than older listings. The longer a property is listed, fair or not, prospective buyers begin to wonder why it hasn't already been sold and keep in mind homes sell closer to their asking price during the first few weeks.