It all depends on what the neighborhood activity has been doing and what the CMA says and what is important to the buyers.
For instance, on my last deal, the home owner didn't have a bunch of cash on hand to pay the down payment AND closing costs, so we did a market analysis, determined what a fair price for the home was, and then added $5000 to that offer price and asked for $5000 in seller concessions. This way, the closing costs are wrapped up into the loan and it is not a large outlay of cash at closing.
On the other hand, if someone wants a lower monthly payment and has cash to put up for closing costs, going for the lowest contract price without asking for seller concessions would be the best way to go.
It's more than real estate. It's RAYL-Estate!
Keller Williams Elite