Product vs Commodity - educate your clients and get it priced to market

Most sellers don't really understand how the real estate market works and feel that the price they think their home is worth is what a buyer should pay. Sure they get the fact that negotiations are involved and that's why they all want to start higher than what they think it is worth to get that wiggle room. This is a mistake as it prices the home out of the market and ends up costing them more money in the long term once you add up carrying costs and minus out the reductions that may not have been necessary had it just been priced right from the start. That is why it's so important to educate your client on the difference between a product and a commodity. Real Estate is like the stock market and values fluctuate based upon supply, demand and the economy just like stocks. Sure there are other factors that can play in like speculation, crazy lending and such but supply and demand is usually where it all begins. Doing your homework and providing a thorough market analysis will show the client who their competition is, what price point is moving, and where they need to position their home in order to be competitive and achieve their goal of selling the home.