The most critical factor driving the sale of your home is how it compares to other homes for sale at the same time in the same price range. Research proves that an overpriced property will simply not sell. And since you only have one chance to make a good first impression, it's important to price the home correctly when it first hits the market.
If the home is priced at market value when it hits the market, you will attract at least 60% of the buyers who are looking. If the asking price is even 10% too high, you will lose half of those buyers. If your price is 10% under market value, then you can attract even more buyers - up to 15%.
Some people wrongly believe that you'll always have the opportunity to accept a lower offer. But the offers won't even come in, because the buyers who would be most interested in your home have been scared off by the price. By the time you have corrected the price down to market value, you've lost exposure to a significant number of active buyers.
We are in a sellers' market, which means even if your price is a little low you will probably receive multiple offers which will drive up the ultimate sales price to market value.