Michele, unfortunately the buyers often want a concession to feel that they are getting a deal. So that would mean you have to build in a concession in order to price it right.

I believe the best way to do it is put in the MLS that the price is firm if you are pricing it at the bottom. This at least prepares the selling agent to do the comps and show the buyer where the market for this home is. If your price is below than you may get the offer you are looking for, however, odds are that to market the home you will have to build in a discount.

With the upgrades they have done if you added then in, that would give you the room that you need to offer a discount or have some wiggle room. IMO  

Michelle:

I believe that in the market you are always better to price the property as tight as possible. That way it is exposed to as many potential buyers in the price pyramid as possible.  Building in closing costs may shift the price range and lose you a buyer due to the buyer not looking that "high".

IMHO

This is the tough question of the times, Michelle. I'm going to agree with John and say I think you have to price as aggressively as you can to get the best opportunity for an offer.

The problem is, no matter what you say in the listing about how firm the price is, you can pretty much expect them to try for a concession.

Even when the comps show you're right on the money, in this market climate buyers are going to ask for more.

If the value is really there, they can't do better elsewhere, and they want the house, they'll buy. If not.....

Not a pretty time to be a seller.

Michelle said:

What do you do? And how is it working in your market?/

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The 3 P's overcome everything!

Instead of dancing around with sellers and buyers and tricky prices or incentives, I just get down to the bottom line now especially in this market, you need a serious seller and serious buyer, no verbal offers for me, they don't hold water and you can throw the over inflated bogus comps from the last few years.

Banks are now asking for 10% down now for mortgages in most cases, and I bet it will rise, even New car  dealers need a down payment to get financing now and the beat will go on as we get further into this mess.

We are back to a basic business practice putting money down to get credit

This in just a Vancepinion and works for me in my markets

"The 3 P's"

http://www.youtube.com/watch?v=sqk1-q8gXcY

Michelle, I think that John is right.

I represent some of those "investor" types, and had the same problem back in 1998.  Every "low baller"  in the country was trying to buy property in my area.  Sellers eventually started getting wise to the offers that were being presented and began to counteroffer.  In a short time we were out of the dilemna and into a "normal" market.

"IT WILL HAPPEN AGAIN."

Michelle, what the owner paid for the home 2 years ago is - irrelevant. If we are talking just cost per square foot then, maybe, your listing comes in second. But there are so many more variables in purchasing a home. You know that even the same home built by the same builder has a different value- sometimes by the lot and its location, sometimes just by the presentation effects. It will always be hard for an existing home to compete with a "new" home for many many reasons.

But, back to Sq. Ft. = the NAR has just announced that big is no longer IN. The NAR is - as usual, a little late in providing this "new" buyer trend. Gary maybe right.  Nate is most likely right - but can your sellers wait? John is thinks like me - price it right.

Vance, that girl is working the game just like Bernanke and those in charge of our lives. I'm sitting down with Bob.

''Vance, that girl is working the game just like Bernanke and those in charge of our lives. I'm sitting down with Bob.''

Ha ha Gregory as I have always said it all comes down to the 3 P's

Price,Price and as you know Price, she finally got it and won the car to boot..... ah buyer and seller getting together she sure wore Bob out!

Got room for me to sit with you two?

look at this Price for a showcase, it will blow you way DuH!!!

http://www.youtube.com/watch?v=BMCFRElyaCc&feature=related