The basic forces of supply and demand are evident in survey results that compare the average difference between the asking prices of the homes and the actual  selling prices. On average, homes that were on the market for less than four weeks actually sold for slightly more than the original price. However, as the length of time a home was on the market increased, so did the difference between the asking price and the selling price. Homes on the market for more than 24 weeks sold for an average 10 percent less than the asking price.

DIFFERENCE BETWEEN SELLING AND ASKING PRICE
BY LENGTH OF TIME HOME WAS ON THE MARKET

Activity vs. Timing Graph

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 chances of a sale when it is new on the market.

The Importance of Intelligent Pricing

As the triangle graph above 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.