As the triangle graph below illustrates, more buyers purchase their properties at market value than above market value. The percentage increases even further when the price drops below market value. Therefore, if you price your property at market value, you are exposing it to a much greater percentage of prospective buyers and you are increasing your chances for a sale.
Timing is extremely important in the real estate market. The above graph illustrates the importance of placing your property on the market at a realistic price and terms from the very beginning. A property attracts the most excitement and interest from the real estate community and potential buyers when it is first listed; therefore, it has the highest chance of sale when it is new on the market. And, the longer it is on the market the more potential negative perception of the house there might be.
****This is why setting the right price in the very beginning is imperative to attracting the most potential buyers and selling your home quickly. Another interesting statistic in the Greater Austin area is homes generally sell for 97% of their asking price. This means there is less negotiation than in most other cities. This is both good and bad news. The good news is, if the house is priced right, you will probably get close to what you are asking for. The bad news is, if the house is priced wrong (i.e. priced high), buyers may not even show up to look at your home thus seriously decreasing chances of selling your home at any price. It all depends on if it’s a seller vs a buyer market.