A house that is priced 10% over its actual market value is many times less likely to sell in the initial 30 days of marketing than one priced within 5% of its true value. Not only will an over-priced home take longer to sell, it is also likely to sell for less than its actual value. This is due to the "discount" often associated with properties that have been on the market for a longer than average time.

It should be pointed out that recommended listing prices are based on historical sales and current market conditions. It is always difficult to walk the fine line between getting the most for a property while at the same time ensuring your asking price is competitive enough to attract serious offers.

How you feel about testing the market will determine how much higher than the current selling prices of similar properties you'll wish to ask for your home. You can always start at a higher price than the market is currently bearing and then, if necessary, reduce your price at a future date. The drawback to this is that it could take longer than normal to sell and you could end up helping to sell other similar homes as they may look comparably less expensive than yours.

This is where the experience and knowledge of working with a Top Producer like me can help as I will spend a lot of time and energy making sure that you know the local market inside and out by doing market analysis on homes currently for sale in your area.