Is the price right?

How do you know if your new listing is priced "right" for the market? Given the fact your CMA is based on purely historical data, how do you know you've not inadvertently over or under priced that new listing? In today's market the greater likelihood is to either permit the seller or your desire to please to dictate your pricing recommendation. Both will probably result in "overpricing". If this sounds familiar, consider yourself a weak agent. Or at least one who succumbed to a moment of weakness somewhere between winning the listing and actually setting a market offering price. Just for you, I have the following recommendations:

1. Check the seller's motivation for selling in this market. Based on the news broadcast over national media, only a hermit wouldn't know the real estate market has slowed and that sellers must be willing to sell for less then buy again at a discount when purchasing their next home.
2. Know the metrics. The real estate profession doesn't attract rocket scientists, but you've got to know, and I mean really internalize, statistical data such as; DOM, list to sell ratios, price per square foot, absorption rate, and supply/demand curve. Know these metrics not only for the MLS, MLS zone, zip code and subdivision but right down to the street level. After all, ALL real estate is local.
3. Know your elevator pitch. What makes you valuable to the seller? What do you bring to the selling process and why this seller should do business with you. If you can't recite your pitch off the top of your head and on demand instantly...go back and practice some more.
4. Be confident but not overbearing. Your confidence is derived from your knowledge of the market. Lots of knowledge, lots of confidence. Agents often become overbearing when they feel it necessary to inflict their price opinion on the seller. Are you buying or selling? Let the "research" advise the suggested price point or range. Your opinion doesn't count unless you're prepared to write the seller a check and buy his house.
5. Finally, do not confuse price with ability to sell a house. Typically, it's the overpriced listing that belongs to the least competent agent. If a seller does not possess the requisite motivation, is not willing to recognize changes in the market, and insists on overpricing his house...walk away. Best to catch this one as an expired listing to relist.

That's my two cents on overpricing. Seems there are so many overpriced listings on the market today that every buyer feels the need to chisel down the asking price whether the house is priced right or wrong. Sadly, this market condition is likely to persist until buyers and sellers realize we've hit the market bottom and demand begins to push the market in the opposite direction. Let's all hope that correction occurs soon. Mike