Sometimes a seller against their agent’s best advice wants to list their home for an amount higher than the recent comparables would indicate it is worth. Mostly real estate agent’s are up in arms against this because they don’t want to waste their time showing a property where the seller wants a high number and buyer’s will be advised to pay the “market” value.
I believe that pricing a home “high” is not necessarily a problem if the market is rising because the comparables are from the past sometimes 3- 6 months in the past and secondly a home is worth what a buyer is willing to pay. If however a buyer is getting a mortgage and an appraisal is necessary then a house is not worth what a buyer is willing to pay but what the appraiser says it is worth.
If a seller is reasonable and not pig headed, will agree to timed reductions then it is up to them what they price their home at but after 10, 15, 20 days they are agreeing to reduce the price.
So how do you know that your home is overpriced? How do you know that you are not just waiting for that one buyer that is willing to pay you more? No showings for the first 20 days a property is on the market is a good indication. No calls for the first 20 days is a good indication.
Ultimately a seller makes the decisions. Sometimes a real estate agent will have to turn down a listing if they believe an owner is going to stay on the market endlessly waiting for that one buyer because we agents have costs in time and marketing to keep a property that isn’t going to sell on the market. I turned down a listing this past week.