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1.  Your property must compete with properties on the market.  Buyers purchase by comparison, so if your home is overpriced, it will not compare favorably with others on the market.

2.  Overpricing causes most homes to remain unsold for too long a time.  Buyers aware of this long period of exposure are hesitant to buy, fearful that there is something wrong with the home.  This increased sales resistance makes it very difficult to sell.

3.  Cooperating Realtors may lose their enthusiasm for an overpriced home after a number of unfavorable reactions from their buyer clients, causing many of them to curtail showing the property.

4.  The right price is the utmost importance in the sale of any commodity.  Homes priced right ususally sell after a normal market exposure.

5.  If you have purchased another home and your present home has not sold and is overpriced, it will cause substantial monetary loss due to the cost of taxes, insurance, maintenance, heat and mortgage interest, etc.

6.  Overpricing accomplished nothing because most homes sell for their fair market value.  The advantage of realistic pricing far outweigh any consideration to price a property more than 5% above this fair market value.  An overpriced home does nothing more than sell a home that is realistically priced.