Undercut the price by 40%... seriously. There is more inventory coming on the market in 2010; we are in a protracted de-leveraging process; and home prices will only go lower. Home owners that are trying to sell or thinking about selling right now are obviously desperate. They are choking on the high monthly mortgage cost. You are in the catbird seat. You're not in the business to make irresponsible home buyers rich. Look out for yourself because a real estate broker's interests are not aligned with yours as a buyer!