This diagram shows the segments of prospective purchasers who are likely to want to see your property based upon the relationship of your asking price to its fair market value.

CUSHION FOR NEGOTIATION?

If you want to have a cushion for negotiation you must still have people to negotiate with.  If you overprice your property, it is not likely to be shown.  If your home is being shown, but not sold, it may be used to make other listings look more attractive.