I just had client ask: “Do you think it would hurt me to list now, when X property is also listed at a similar price?”
My answer: Yes, in terms of basic supply and demand. But, there is more to it than that. If you don’t stand out in presentation or pricing (so, value) your property will be considered a commodity, and the smart Buyer/agent will use your neighbor as leverage against your price. However, if you are going to list competitively (great presentation; fair price), the combined inventory will bring more traffic to both properties. Buyers/agents will say: “Oh, there are two that might work on this street/in this building, let’s definitely go there.” So, more inventory definitely hurts if you aren’t playing to win, but if you are playing to win, you can use increased inventory to your advantage.