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How much negotiating room should I figure in my asking price?

The closer you price your home to its actual market value, the quicker it will sell and the easier it will be for you to get a full-price offer.  Most sellers allow anywhere from 1% to 3% of the market price for negotiation purposes before scaring off interested buyers. For example, a home valued at $130,000, could be listed for 133,900 or approximately 3 percent above the actual market price.  At that price, people will look at your home and feel comfortable making you an offer.  

But as the price of your home rises to 5% or more over its market value, the number of interested buyers significantly drops or stops completely.  Those buyers who do take the time to look at your home might not bother making an offer, fearing they would offend you with an offer closer to what your home is worth.