Whatever the reason may be, if it’s to get top dollar or to leave room for negotiating, overpricing is not in the seller’s best interest. Buyers are savvy. They can do the research and their agent knows the market and knows the area.
Selecting an agent that will suggest you list with them because they have the highest price for your house isn’t in your best interest. They end up with a number of listings in their portfolio to show off. This helps them, not you. You should always review a Comparative Market Analysis (CMA) that should be provided by your Realtor.
Reasons NOT to overprice:
It will help sell the competition. This makes other homes that are priced correctly in the current market more appealing.
The ‘right’ buyers won’t see it.
Few, if any showings.
Or, the possibility of many showing, but not any offers.
The Seller will lose the key marketing period when the house is new to the market.
The Seller is not in any rush to sell so they price high to “see what happens”. This sets the stage for a price reduction spiral.
It won’t appraise. The Buyer’s mortgage won’t get approved if the house doesn’t appraise.
Agents won’t show it. They know the market.
The listing becomes dated and stagnant.
The home might eventually sell below market value.
Review what your goals are and make your decisions based on the knowledge of your Realtor and their expertise of the current market. Rethink that strategy. Pricing is the most important piece of the pie when it comes to selling your home.