If a home is priced at or slightly under market value it will attract buyers and have showings but offers on it will be for less than the asking price by at least 10K on the average priced home. It isn’t a good strategy to price the home at 10K over market value to help sellers get their bottom line. Homes that are over priced by any amount do not get many if any showings at all. Without any showings there are no offers and the home sits on the market month after month.
market times are longer than they used to be but homes are being sold every day. The homes that sell are those that are properly priced.
It works the best to set a price that is slightly below market value. It will get showings and offers but on average those initial offers will be for about 90% of the asking price. The good news is that once an offer comes in it can be negotiated up. Buyers seldom make their very best offer on the first round and they will negotiate. I like to think of low ball offers as opportunities.
The true value of a house is what a buyer will pay for it and it is buyers, or the market as we say that dictates the value of real estate, not the seller. Sellers have to be ready to play the pricing game and Realtors have to be willing to go that extra mile to recommend a price that is low enough so that buyers will see the home, but high enough so that when an offer does come in it is possible to negotiate it up to an acceptable amount.
Sellers need to understand that no matter what price they set buyers will offer less unless the price is so low that the home gets multiple offers and buyers raise the price by outbidding each other.
When I represent buyers I play the pricing game a bit differently. There are only a few circumstances where I will recommend making a full priced offer.