A seller needs to understand that the issue is not what they wish to get, but what a willing buyer and informed buyer will likely pay. Generally the greater the disparity between the market value and the listing price, the less chance of a sale within a reasonable period of time.
Over pricing the home is one of the worst things you can do and will result in a negative situation for the home owners. It's difficult to overcome from a home that is priced to high and will only prove costly for everyone involved.
property doesn’t sell in a reasonable amount of time or doesn’t sell at all.
they will avoid the property or just use it for comparison purposes to sell other well priced properties.
it’s over looked by the ideal buyer given the unrealistic asking price.
the unsold home is adjusted downward, market staleness creeps in and few notice the lower price. Buyers can assume there is something wrong with the property. Seller could have to re-list just to gain some market momentum.