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. Any study of the market will show that from the time when houses are put on the market, prices gradually descend as time passes. When the price reaches market value, the house sells. Most of all, no matter what defect a house has, price will cure it. A house priced right is half sold.