In other words, if a home is priced below market, it will sell faster. If it is priced above market, it may sell at that price, but it will take longer to sell.
When I list a home, one of the things that I ask my client is this: Which is more important to you? Selling fast, or making the most money possible? Or, as with many things in life, somewhere in between?
After giving good, sound advice to my client, and showing them the high price and the low price, my client makes that decision—not me.
Levitt implies that this decision is made at the time of the offer. Not so. In addition, my place as a real estate agent is not to give orders to my clients. My place is to give advice. Frequently, I am in the position where I am representing a seller, and we receive an offer. The seller will often ask me, "If we counter them, do you think we can get more?"
It's a fair question. The problem is, I'm not a mind reader. It is very common for the buyer to have their own agent representing them, for example. The best advice I can give is to professionally point out what is likely to happen in any given scenario. I can give that advice based on 10 years of experience, but that doesn't make me a mind reader. I don't really know what the buyer will do if we counter them.
Another old saying: "A bird in the hand is worth two in the bush." As I am fond of pointing out to people, it's a gamble. You can take this offer, or you can see if you can get more money. But be prepared that your buyer may walk away if you gamble. What you do depends on the particular situation and how much of a risk-taker you are. Do you need to get this home sold right away, or can you afford to take the risk of possibly losing this buyer and waiting for another one? Neither way is wrong, it just depends on the situation.