Pricing forward

Understand "forward pricing.” When pricing your home — the first step in the negotiation process — "don’t simply take what the last home in the neighborhood sold for and make that your price,”

Instead, use forward pricing: If homes in your area are appreciating by, say, 10% annually, and the last comparable home sold six months ago for $300,000, then yours should be priced at $315,000 (half of 10% of $300,000 equals $15,000, which is the amount that should be added to "forward price” for this home).  "That’s pricing it forward to the current market,

What if homes in your area are depreicating?  If the last comparbable home sold six months ago for $300,000 that price is no longer the current market; you should be priced at $270,000.

Both examples are pricing it forward to the current market.