That depends heavily on where the market stands. Real estate moves in cycles, and our data shows that in the strongest years, sold prices average only 2%-3% under asking. In sluggish periods, the average gap can widen to about 10% below asking.

So during boom times, when prices are climbing, building in some negotiating room is probably wise.

In slower, more competitive stretches, however, our experience says pricing close to your true bottom line helps your home stand out. Picture it this way: if most sellers pad their prices 10% above their bottom line and you price near yours, buyers will immediately recognize the better value in your home.