Many sellers believe that if they price their home high initially, they can always  lower it later if they don't see any acceptable offers.

Often, when a home is priced too high, it experiences little activity. Gradually the price will come down to market value, but by that time the home has been for sale too long and some buyers will be wary and reject the property ie. "Something must be wrong with that house since it's been on the market for so long."

On occasion, the seller runs out of time or patience, and the price is dropped below the market value. As a result, the property finally sells for less than it is worth.

You may think that interested buyers "can always make an offer," However, in my experience, if the home is overpriced, potential buyers looking in a lower price range will never see it. Those who can afford a home at your asking price will soon recognize that they can get a better value elsewhere. After all, buyers are very well educated today, and know home values to within a few thousand dollars.

As soon as a home comes on the market, there is a flurry of activity surrounding it in the first 3 weeks. This is a crucial time when Real Estate Professionals and potential buyers sit up and take notice.

If the home is overpriced, it doesn't take long for interested parties to lose interest. By the time the price drops, the majority of buyers are lost or have already purchased another home.

Pricing your home must be based on current market activity, and recent sales. It is important not to look at current listings alone, since these properties have not sold yet, and their true market value is still to be determined by buyers.