First off, what exactly does “chasing the market” mean? Let’s put it this way: homes that are listed at the best price for the condition and location they are in are considered “in the market.” Homes that are “chasing the market” usually have asking prices that are too high. These homes either take a long time to sell, or never sell at all.
When pricing your home to sell, don’t focus on what it’s worth. And on a side note, if your real estate agent ever walks into your house and tells you what it’s worth, you may want to reconsider working with them. It’s not our job as real estate agents to tell you that, it’s an appraiser’s job. Our job is to help you find the right price for your home, by studying market statistics and trend reports. Again, it’s not so much about what your home is worth, but what buyers are willing to pay for it, given its condition, location and how much similar homes in the area are selling for.
If you want to try putting a higher price on your home just for the sake of trying to get more money for it, be prepared to wait a long time before it sells. On the other hand, if you are looking to sell quickly, the best way to go would be to enlist the help of a good real estate agent who can help you price it right. Buyers are willing to stay very close to the asking price, provided the house is priced fairly to begin with.
