For most people, the sale of their property is one of the largest financial transactions they will ever enter into. Proper pricing is absolutely essential to attract the greatest number of potential buyers and increase the possibility of a quick sale and a multiple offer situation.

Many owners I encounter are under the impression that if they list their property high initially and reduce gradually, they are more likely to sell for the highest amount possible. However, I strongly advise against such a strategy.

If the property is overpriced, the listing experiences little activity and is likely to sit on the market for a long time. No matter how hard an agent promotes the listing, feedback from the few viewings that do happen will often be negative; a potential buyer has an expectation for a better apartment at such an unrealistic price point. By the time the listing is reduced into a more accurate range for qualified buyers, it has been on the market for too long and the buyer assumes there is something wrong with the property, or tries a low-ball offer.

It’s important to understand that it’s not the homeowner or the agent that sets the market value of a property – it is set by the market itself through a combination of comparable sold listings, availability of comparable listings, and overall economic conditions. Determining an accurate list price that captures the true value of your home is the key to arriving at the best possible sale price. It’s a delicate process that requires extensive, up to the minute market knowledge and good experience.

Don’t choose the agent who offers to list your property for the highest price. Choose the one who knows the market and can substantiate their opinion of value, offers advice and insight, and provides a detailed marketing plan.