Understanding Price is imperative both form the Seller’s and Buyer’s perspectives.
For the seller, pricing too high can be disastrous. Buyers will focus their attention on lower-priced listings first. So can pricing so low that buyers wonder what is wrong with the property.
Much the current Silicon Valley Market is deliberately priced low to spark interest, often resulting in multiple offers driving the price up as evidenced by the ratios over 100%. Conversely, in the areas where the average is less than 100%, buyers can be picky and ask for concession.
Here we see that in all but the highest category, home priced are bid up, on average. The $2,000,000 to $5,000,000 peak market segment homes average between 9.3% and 11.6% above list, though homes in the $1,200,000 to $1,800,000 range sell more than 16% above list, meaning buyers have to be ready to make deals.