Over-pricing vs. Under-pricing

When listing short sale property, a Realtor may start with an asking price that looks to be too high compared to the current market. This may be a part of a required process on the part of the lender involved. Many times the lender will require the home to be marketed for several weeks.  If there is no interest, then lower the asking price.  Continue to market the home at the new asking price for several weeks and, again if no offers, lower the asking price.  This is a process continued until you have an offer to be considered.  Now the lender has a history of pricing and marketing the home for maximum return. Sometimes when listing a short sale property, a Realtor may have an asking price that seems very low relative to the current market.  This may be the over-anxious agent trying to get several offers going right away on the home. Until there is an offer received on the home, the lender will not begin to process a short sale.