Dangers of Overpricing

Fewer buyers are attracted, and fewer offers received.
Marketing time is prolonged, and initial marketing momentum is lost.
The property attracts "lookers" and helps houses competing with yours look better by comparison.
If a property does sell above true market value, it may not appraise and the buyers may not be able to secure a loan.
It may become necessary to adjust the price below market value to compete with new, competitively priced listings. Hence, the property may eventually sell below market value.