If the price of your home is too high, several things could happen:

• Limits buyers. Qualified buyers for the specific neighborhood’s price range may not view your home, because it would be out of their buying range. If you get buyers for a higher price range, they will have more expectations, including location, condition of the home, improvements.
• Limits showings. If your home is priced at the upper price range of the neighborhood agents might be reluctant to show your home, because they focus on the buyers’ best interest and best value.
• Used as leverage. Other realtors may use this home to help sell homes that are better priced.
• Extended stay on the market. When a home is on the market too long, it may be perceived as defective. Buyers may wonder, “What’s wrong,” or “why hasn’t this sold?”
• Lower price. An overpriced home, still on the market beyond the average selling time, could lead to a lower selling price. To sell it, you will have to reduce the price, sometimes, several times. In the end, you’ll probably get less than if it had been properly priced at the start.
• Wasted time and energy. A bank appraisal is most often required to finance a home. Banks usually approve a mortgage between 80%-90% of the appraised value. If your home is overpriced, the buyer has to come up with the difference between the loan amount and the selling price. Many of them can’t.