Sellers are looking for their realtor to sell their home at the best price the market can bear. Pricing can be tricky. There are some sellers that are looking at what they paid for the house, what improvement costs they've invested into the house and what amount they would like to net after the sale. The lending institutions look at the market value- the style of house, the square footage, the year it was built and other listings that have sold in the same neighborhood. They may consider the lot size or location of the property. For example, acreage or waterfront properties.
Pricing correctly in the beginning is of utmost importance. Marketing dollars are best spent when it's a brand new listing. When sellers are priced at market value, they will see more buyer traffic and less days on market. It is more likely for a seller to attain full asking price if their listing is priced spot-on. Wiggle room is over rated and even if a buyer agrees to pay more for a listing than what the market portrays, there may be appraisal issues down the road.
It is in the sellers best interest to allow their local real estate professional to give a comparative market analysis for their house and price their listing on-target. This will lead to less negotiating and a smoother transaction.