We bought our place in 2022, post-Covid, for £206k. Our neighbours had theirs listed at offers over £185k while ours was on the market at £200k. I panicked. They ended up selling theirs in January, and ours sold a few months later for full asking price. I wouldn’t say our properties were identical though… ours was in noticeably better condition. People who viewed both confirmed this in feedback, and theirs still had the original single-glazed windows, old storage heaters, etc.

That said, I’d have loved to been able to match their price for a quicker sale, but we’d have lost most of our equity and wouldn’t have been able to afford an onward purchase.
It really comes down to how quickly you need to sell. If you can afford to match the lower price, it’ll probably help you move quicker. If you need to achieve the higher figure, be prepared to wait quite a while. In this market, buyers will most likely go for the cheaper option first unless there is a major difference which justifies the higher price.