The listing price of your home is based on careful analysis of the current market, comparable homes including the asking and selling price of sold properties as well as the current inventory of homes and the different features of the properties.
When a property is priced properly for its market, it will sell sooner and encourages prospects to act quicker. Most serious prospects are well educated about asking prices in the areas they are seeking. They will not waste their time on a home they consider overpriced. However, buyer's fear they might lose out on a good home when it is priced right and they are less likely to make "low ball offers". Better pricing can attract multiple offers!
Bottom line, if a home is priced right, the excitement of the market produces higher sales prices. You net more both in terms of actual sale price and less in carrying costs. Remember, be realistic in pricing your property and understand that your price should always reflect the current market situation!