The slight uptick in nationwide home sales is due to price reductions. The wise seller won’t look for a premium these days One of the hardest things a home seller has to do is lower the asking price. Not only does it mean making less money on the sale, but it also shows weakness in an increasingly competitive market. A price reduction is often a red flag to home buyers that the seller is in no position to negotiate and that further reductions are possible. Despite the economic and psychological pain, accepting a price reduction—even a sizable one—may be the only way to sell a house in this market. For sellers who can afford to ride out the downturn, the smart move is to take your property off the market. For everyone else, it’s time to get real.
By Prashant Gopal, May 5, 2009 Businessweek

Link to article