Believe it or not this situation is entirely possible. The most likely scenario is that the home was probably way under priced when it sold in 2012 and the seller is now selling it for the current market value. This price was probably low because it was a distressed sale or the seller just wanted/needed to get rid of it. Current market values on properties have very little to do with the previous sales price of the property. The most influential factor, is the price similar properties are currently selling for (not the asking price, the actual sold price).