The answer to this question - will a house sell for more than its asking price - does not just relate to how the asking price compares to the market value of the home.

Certainly, if a house is priced too low, or even priced fairly in a competitive market, that will increase the likelihood that it will sell above the asking price...

[1] A house worth $350K, listed for $330K, will almost certainly sell for more than the asking price.

[2] A house worth $350K, listed for $350K, is likely to sell for more than the asking price in the current market.

... but there are other factors that affect this as well.

[1] How many buyers have viewed the home?

As the number of showings increases, the likelihood of a house selling for more than the asking price also increases.

[2] How many buyers have made an offer?

As the number of offers increases, the likelihood of a house selling for more than the asking price also increases.

All of this might seem pretty straightforward, but pause to reflect on these dynamics as you are considering an offer on a house recently listed for sale.

Consider these two fictional houses that came on the market (not really) yesterday, that we’re walking through today...

[1] House listed for $350K, with 18 showings and four offers thus far.

This house is very, very likely to sell for more than the asking price.  :-)

[2] House listed for $350K, with eight showings and one offer thus far.

This house might sell for more than the asking price - if another buyer jumps in and makes a second offer.

[2] House listed for $350K, with 12 showings and no offers.

This house could, possibly, sell for more than the asking price, but it is not seeming very likely given that lots of buyers have looked at it already and there aren’t any offers.

[3] House listed for $350K, with one showing and no offers.

This house is almost certainly not going to sell for more than the asking price - unless a bit more time passes and several buyers all of a sudden go see the house at the same time and make simultaneous offers and then have to compete with each other to buy the house.

So, to answer the question of whether a house is likely to sell for more than its asking price, we really need to start by asking how many showings a house has had and how many offers exist.