I have yet to see a home that seemed to get punished for underpricing. On the buy side, takes some comp research, but it's not that hard to differentiate the house listed at $899k that is going to sell for 1.1x million and the house listed at $899k that could even top 1.5 million.
Overprice and you risk not pending after 1-2 weekends, and in this market buyers assume there must be something wrong with a place if it doesn't have a winning bid within that 1-2 week window! Often overpricing is not the only problem though. You would think there is an arbitrage opportunity when looking at overpriced places with high days on market, but all we have run into here is houses with major unchangeable problems or owners stuck on a price that the market won't bear.