Sellers who price their home above market value will appeal to a smaller number of potential buyers. But there are other variables too, the most important of which is timing. Once the listing has been on the market for a month or so, buyers expect sellers to lower the list price.
From this article:
Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. In that way, the seller will not be fighting with a buyer over the price, but instead will have multiple buyers fighting with each other over the house.
Realtor.com, gives this advice:
“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”