Factors That Influence Overpricing

1. Perceived emotional value
2. Desire to buy in a higher-priced area
3. Original cost of home was too high
4. Lack of real market information
5. Extensive renovations / hidden costs

If the Listing Price is Too High

You will miss out on many buyers looking in the price range where your home should be. Chances are the offers won't come in, because the buyers who would be most interested in your home, have been scared off by the price and looking elsewhere. If an interested party does want to make an offer, they will likely base the offer on the sales figures of neighbourhood comparables. By the time the price is corrected, you've already lost time and exposure to a large group of potential buyers.