Codependent pricing. Overpricing your home in anticipation of a low offer.
Codependency is a behavior in which a party engaging in dysfunctional behavior stays the same while the codependent “enabler” changes their behavior to compensate. In this case, the buyers are the dysfunctional party making low offers, but the seller overprices to compensate. Sellers say: “But I know the buyers will offer low so I’m just going to raise the price so we end up at market value.”
By doing this, sellers end up with an overpriced home that doesn’t sell, while buyers continue on with their lives. Price properly and you’ll get the buyers to change their behavior.
You harm you own marketing efforts by appealing to the wrong buyers. How do buyers react to homes that are overpriced?
You don’t want to become a ‘Pinball Listing’. In a pinball game the ball bounces off bumpers (overpriced homes) to scoring positions (properly priced homes). Buyers ‘bounce” off an overpriced listing into a properly priced homes instead. If your home is overpriced, it makes the others look better and may help the competing homes sell first.