Do Price Reductions Help or Hurt?

I ran across a very interesting article today that dealt with price reductions and how they affect market times. In short, sellers are MUCH better off to price competitively from the beginning than to price high and then reduce -- doing so results in a trend of longer marketing times AND deeper price cuts than would be necessary if the home had been priced properly from the beginning. Very interesting... please keep in mind when pricing your home for spring market. An improved market does NOT a lot of wiggle room make! This is not to imply that you should not do a price reduction if you aren't getting a lot of activity. Rather, it emphasizes the need to price properly from the beginning rather than have the mindset that one should price high so you can bring it down later if necessary.