The #1 secret to selling success is listing your property at "fair market value" or FMV. Fair market value is defined as:

The amount at which property would change hands between a willing buyer and a willing seller, neither being under compulsion to buy or sell and both having reasonable knowledge of the relevant facts.

In order to determine this value, an agent will conduct a comparable property analysis and estimate current and future market trends to predict what the value would be for the property when it is listed. If you buy into the philosophy that your ideal listing price should be FMV, then your next step is to honestly evaluate your property in the marketplace to determine its value. This means performing property searches to determine where yours ranks in the marketplace. The goal is to rank high.

Occasionally sellers buy into a philosophy different than FMV. The seller will list the property above FMV, hoping to hook a buyer. If a buyer does not come after 30 days, which is often the case, then the seller will gradually lower the price until it reaches FMV. Unfortunately, after 30 days the listing is tarnished. Many previous prospective buyers have moved on and purchased other properties, and those who are still in the market are informed by their agent that this property was over-priced, thereby giving the impression that the seller is desperate, leading to "low ball" prices.