Sellers lose valuable time. Time is wasted in preparing for showings. Families are separated needlessly when an out of town transfer is involved, and school openings are missed. Negotiations between buyers and sellers could result in withdrawn offers if the seller insists on this high price. Buyers may think the seller is not serious and does not want to sell his home.
Buyers concentrate on objections and minimize good features of the home.
Buyers become confused about values and generally buy another home where they are more comfortable about the price. Negotiations between buyers and sellers usually break down when a home is overpriced because a seller does not know a good offer when he sees one. The real estate agency and agent may waste advertising dollars. Sales associates lose enthusiasm about showing properties that buyers reject due to price. They prefer showing homes where their chances of selling are better.