The concept of pricing ahead of the market relies on the notion that the market moves in a direction up or down.  In a rising market, buyers are frequently will to pay more that they would if the market were static.  This is because they think the prices will go up even more and they don't want to miss the opportunity.

What about in a declining market?  Here, sellers need to price their homes for less - as best it can be determined at a given moment - what their property is worth.  They need to be ahead of the market.  Why?  Because in this situation buyers are worried about paying too much.  If the market is declining they don't want to pay what is property is "worth" today, because they expect it will be worth less tomorrow.

There are importantly different consequences to failing to get ahead of the market depending on whether the market is going up or down.  In an up market, if you don't price ahead of the market, then you might not get as much as you could have.  This may cause a bit is wailing and gnashing of teeth, though you will still get your home sold.

On the other hand, if you fail to get ahead of the market when the market is in decline, the consequence is not that you simply receive a lower price, the consequence is that you don't get a sale at all.  Sellers are understandably concerned in a ahead of the declining market that if they did get ahead of the market they would then just receive offers even lower than their asking price.  But this is where the negotiations come in.  The first order of business to always to have someone to negotiate with.

As we approach the spring season there may need to be a hard look at the realities of the market place, and trends of the general economy.  If the supply is outweighing demand, then get out ahead of the market.