Poor pricing will negatively affect the selling price of a home
The rationale behind pricing high is usually this: buyers will always make a lower offer and you'll have 'room to negotiate'. The problem with this is that the seller sends the following message(s) to potential buyers
1. I'm greedy: I know you'll start negotiating by knocking ?% off my asking price so I'll raise the price we start at.
2. I'm unreasonable: I want this amount of money no matter what the market dictates.
3. I don't know the market: I really do think my house is worth that much more than the last few houses that sold.
4. I'm delusional: My house is unique and you'll pay for the privilege of having it.
5. I don't really want to sell: I’ll set my price high and if I don't get it, so be it.
Good buyers' agents will alert their clients to these possibilities and seek out properties that are better priced.
For both buyers and sellers, having an agent who can accurately evaluate the price is essential.