This is an understandably popular question, but it really does not have an obvious answer. Getting a great sale price is important, and oddly enough, pushing the listing price too high for the area you live in, will actually most often give you the opposite result.
The reason for this is the Internet. It is both a blessing and a curse, as buyers become quickly educated on what to expect in terms of pricing, square footage, upgrades and so on, in any given neighborhood.
The biggest issue here though, is Days On Market! When a seller puts a higher-than-typical price on their home, buyers tend to hold off in both viewing and making offers. As the days on market add up, buyers become wary, and wonder ‘What is wrong with this home?’ There is probably nothing wrong, it’s just the Seller priced it too high at the start of the marketing period, and perhaps even failed to respond to a lack of offers, by adjusting it modestly. At the end of the day, these homes often end up having to drop the asking price too much, and selling for lower than they probably should have!
Pricing at market value, or even a tiny bit below, will help to bring in offers. Best case scenario, you get multiple offers, because buyers see it as a ‘deal’ and put their best foot forward to make sure they can scoop it up.
This psychology can definitely lead to offers over asking. Remember, you are always in control and never have to accept any offer – so there is no danger of you getting too little for your home with this strategy.
Your realtor should be guiding you through the acceptable range on value for your home – given it’s location, maintenance level, upgrades, features etc. This way, you will always make an informed decision and get the most possible for your home.