1- Sellers may lose the positive impact of the "newness" of your home being on the market.
2- Sellers begin to lose confidence in their agent. They may blame them when the home has not sold, or say they have poor salesmanship. They may say they aren't advertising enough, or that there isn't enough showings and your agent isn't concerned enough. If the house was priced right, this would not happen.
3- Sellers begin to concentrate on the objections they hear about their home, and not focus on the good features
4- Sellers may become confused about the true value of their home, and generally they may buy another home where they are more comfortable about the price.
5- Agents may lose their enthusiasm about showing properties that buyers reject due to price. They prefer showing homes where their chances of selling are better.
6- You as the seller place yourself in a poor position to obtain maximum dollars, since your property can become "shop worn"
7- You lose valuable time! Time is waster in preparing for showings. If you have to move, but one stays behind to sell the house, families may e separated needlessly.
8- Buyers become suspicious, thinking that there is something wrong with either the home or the neighborhood when the home has been on the market too long.
9- The real estate agency loses it's reputation in the area when a property is not sold. The neighbors blame the agency and will list their home with another Realtor.
10- Negotiations between buyers and sellers usually break down when a home is overpriced, because the seller does not know a good offer when they get one.
11- The real estate agency wastes advertising dollars.
12- Sellers lose opportunities to buy another home, or incur additional costs when carrying two mortgages.
What you should take to heart in all this, is trust your realtor. When you're getting ready to list your home, your agent will have an honest discussion with you on what you can reasonably sell your home for (and the data behind that number) You will get a breakdown of all the fees involved, and what you can expect to get (in the form of a check) when all is said and done.
If you would like an analysis of what you're home is worth, please give me a call. I'd be glad to help you decide if selling your home is something you'd like to do.