Sellers be careful...If you list too high, you may end up with too little. Yes, that can happen and often does. Why? That's a question I will address but you should talk with your agent to see if this is true in your market area. It certainly holds true for many.
By pricing too high you discourage a number of buyers from even looking. That's for starters. When folks start looking for property they are usually hoping to find what they want at the lowest possible price. Often they will begin by looking at homes that are less than they will eventually pay. If your listing is well above their range it will be eliminated.
Eventually they may well move up in price but your home may still be out of reach. Once again it is bypassed. Meanwhile your home has been on the market with few if any lookers. You now have begun considering a price reduction. Even with that reduction you are still above the list price your agent recommended. Or, perhaps the agent you hired did not recommend a lower price, the other agents did. No, the one you chose priced it where you wanted it.
As the listing times grows longer the price reductions you authorize escalate. But are they big enough?
Buyers are still in the driver's seat. As long as that is the case, they will be looking for bargains and finding them. Over priced properties are not on their list of places to see let alone purchase.
Are you really interested in selling? If so, price it to get it sold!