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National Association of Realtors

Think twice before setting asking price

Think twice before setting asking price

If you want to get the best price for your home, should you: A. Ask for more than you think it's worth? B. Ask for exactly what you think it's worth? C. Ask for less and count on a bidding war to push you over the top? A study in the Journal of Economic Behavior & Organization this year argues that the answer — despite what you've probably heard — is A: overprice. Underpricing doesn't work for the average seller, the authors say. They suggest that pricing high pays off in an extremely modest way, a boost of about $100 to $200 on average over similar homes. Underpricing in the hope of setting off a bidding war, the study says, nets average sellers...