Here in the Boise area, like a large part of the country, the real estate market is a seller’s market. High buyer demand with existing home inventory that can’t meet demand, combined with buyers from more expensive markets out of state has created a market where homes can sell for above the listing price.

Many sellers are tempted to think that because of these factors, they can mark up the price of the house to net as much profit as possible. However, this scenario only plays out in certain circumstances. Most of the time if a house is priced above market value, it will sit on the market longer. As the home sits on the market, the price will eventually be lowered back to fair market value.

In theory, this would help the home sell now that it is priced at market value. However, potential buyers will see the high number of days on the market and a “price reduced” tag in a seller’s market, and wonder if there is something wrong with the house. In reality, it is all because the initial over-market price turned away buyers in the beginning.

In summary, consult your realtor and list your home as the housing market indicates. In fact, listing your home just 10% less than market value will increase buyer interest by up to 15% (source) This will help you sell your home faster and for more money overall. With any luck, a bidding war will occur and you may sell your home for over asking.

Here is another way to earn more money when you sell your home: Don’t try For Sale By Owner (FSBO)