It is important to properly price your property to attract the largest number of potential buyers. Do not try to "test the market" by advertising a price that is 10 to 20 per cent above fair market value. You will only succeed in helping sellers who are selling in your area for fair market value, as they will be able to compare their home to yours.Later as you start to reduce your price, people will wonder whether the reduction is because something is wrong with your home that is not beig disclosed.
Also do not price your home more than 7 to 10 per centbelow fair market value, hoping to trigger a bidding war. Buyers and buyers agents are more sophisticated now about pricing and can recognize the tactic, as well.
If you want to price your home to sell, first do the proper staging to make it appeal to the widest number of potential buyers.
By being open and honest about the price you will accept, you will attract the most serious buyers who are ready to purcahse a home.