Exposure to qualified buyers sells a home. Buyers, who do look at it, may be looking for more features in a house in that price category and will not buy it. Buyer demand, then, sets price. If no offers are received, no negotiating upward can take place. Buyers become suspicious, thinking there is something wrong with either the home or the neighborhood when a home has been on the market too long.
Buyers always ask how long the house has been on the market.
Contrary to popular opinion, the longer a house remains on the market, the greater the chance is it will sell for a lower price than if it had been priced properly in the beginning. The very first contract received is often the best because it comes from a backlog of buyers who have been looking and are desperate to buy, and will offer the best price. These buyers have been waiting in the wings for this particular house, and their agents have been eagerly on top of the market, seeking this house. When an agent accepts an overpriced listing, as time goes by, the sellers lose confidence in the agent, blame the agent when the home is not sold, complain about poor salesmanship, failure to report to them often enough, complain about lack of advertising, not enough showings, and lack of concern on the agent's part. Lines of communication need to be kept open between the sellers and the agent at all times and re-evaluation of pricing should be done on a regular basis based on the amount of times the property has been shown and any feedback received from other real estate agents who have visited the property.