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Pricing a home above market value from the beginning of a Listing agreement can have adverse consequences for the seller.  The conventional wisdom is that you can always come down in price, but you can't go up.  This is where the conventional wisdom does you no favors.  

Buyers and their Agents quickly lose interest in homes that are priced too high.  Buyers typically see several homes before making an offer.  An overpriced home simply won't matchup with others that are priced at market value.  A lack of interest will be evident in few if any showings and no sign an offer is coming from any of the showings that did take place. 

As the home lingers on the market and the Days on the Market (DOM) counter grows higher, interest will be less than when the home was initially on the market.  To jump start interest in the home in the form of showings and possibly offers, the price might have to drop below the competition that is is priced at market value.  So in the long run, you end up getting less than market value by overpricing your home from the start. 

Pricing a home at market value is key to getting the top price for your home.  An accurate Current Market Analysis (CMA) is the tool that should be used to set your price.  A properly priced home will result in frequent showings and possibly multiple offers which will land you the best price possible.