Unlike a real estate market that is going up in value, appropriate pricing in a declining market is critical. It is important to understand that pricing your property too high when first listing can result in a big loss in equity. If you make the mistake of pricing too high, you can catch up by making a very large price reduction at or just slightly above market value. A small price reduction above the market value will cause you to receive ultimately less upon selling and is know as, “chasing the market.”
David Norwood - Central Coast Real Estate - Price you Home Correctly