Well, several factors may come into play:
You might help sell similar homes that are priced lower.
Your home may be on the market longer.
You could lose market interest and qualified buyers.
You might create a negative impression of the property.
You could lose money as a result of making extra mortgage payments while incurring taxes, insurance and unplanned maintenance costs.
You may have to accept less money.
A potential buyer may face appraisal and financing problems resulting from the inflated price.
It is not recommended to sell your home any higher than the appraised value unless demand is high in your area. Ask you real estate agent which price would be right for your home. Also make sure you get a Home Value Request to assist in determining the best sales price for your home.