Could pricing misconceptions kill your sale?

Most sellers really, really want to get top dollar for their homes — and they’re surprised to learn that a high asking price might have the opposite effect. “It’s counterintuitive, so it’s hard to get sellers to believe it,” but it’s true, says Diane Saatchi of Saunders & Associates. Here’s why:

Myth: Buyers like a deep discount. Give it to them by pricing it high and selling it low.

Reality: “I think buyers are too smart for that these days, because there's a lot of information available on the Internet. People can go online and see what things have sold for," says Saatchi.

Myth: You can't raise the price later, so leave room to negotiate.

Reality: "The problem with that thinking is if you are out of line with market value, nobody is going to come see it and come show it," says Saatchi. "Don't build in the wiggle room …This is a no-wiggle market," agrees Lynne Kleinman of Daniel Gale Sotheby’s International Realty. "Price it where it will sell," she advises.

Myth: If I price it too low, it will sell for less than it's worth.

Reality: "You can't under-price it if you give it the broadest exposure. By pricing it low and getting people excited about it, the seller gets the leverage back," says Saatchi.

Myth: My full asking price is worth waiting for.

Reality: "If you can sell it two mortgage payments sooner, it's like getting more money," points out Saatchi. The expense of keeping the house longer can quickly eat up the difference between the offer and the asking price -- and then some.