Psychology of Pricing

On the cover of today's real estate section I agreed with every word and strategy in that article except for the one from Barbara Fox who prices 5% higher to leave room for negotiation. In the new market that has emerged I believe in pricing at what it should be and even slightly lower because the more competitive pricing tends to draw more buyers which in turn leads to competitive bids while allowing the market to set the correct price without leaving money on the table. The first thing buyers ask "How long has it been on the market?" If it has lingered they think something is wrong with it or if no one else wants this place why do I? While biddings wars can be frustrating some buyers may feel if everyone else wants this apartment it must be good. Bottom line --unrealistic pricing just doesn't work anymore.