The old strategy was to price your home a little high so that you have negotiating room. Although that might work sometimes, this idea is all but dead.
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With websites like Zillow and Trulia, technology has changed the game.
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Home buyers are searching "up to" what they can afford. So if their budget is $800K, their saved search in Zillow is set so that they get a notification when a home $800K and lower hits the market.
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So if you priced your home at $825K with a strategy of having negotiating room, you lose.
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You lose because your home will never come up in a $800k home buyers search and they will never get a email notification from Zillow. In other words, your home doesn’t exist.
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What will happen is that you will stay on the market for 30 days... then drop your price to $800K. NOW you show up in their searches. But by that time your listing looks old and stale.
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Buyers will ask "Why hasn't this property sold? Is something wrong?".
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Price your home at $800k from the start and you would probably get multiple offers and drive up the selling price.
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Multiple offers always gets you more money in the end.
