As I research the MLS for listings to show my buyers, I always come across houses that are priced too high I wonder if they get any visits at all. It is really unfortunate and demoralizing for a seller to have to contend with the fact that his/her house has to sell for less than the desired listing price. But the reality is, in some areas, there are just so many houses on the market and the homeowner has to compete with new houses offered by developers, existing houses offered by lenders, foreclosure auctions, and fellow homeowners, some of whom are in distress and are doing short sales.
The homeowner may have no way of decreasing the price without having to resort to a short sale, and if a short sale is out of the question, should the homeowner still proceed with listing at the higher price? I think if one were to consider the futility of listing at a high price in this market of high inventory and low prices, and the fact that each new listing, by adding to the already bloated inventory, may further exacerbate the market,I would say the homeowner should not proceed. Once a listing is activated, the DOM (Days on Market) starts counting, and after a while, the DOM figure will make the house look even more unattractive.
The whole exercise may initially give the homeowner some hope, albeit false, but at the end of it all, will not do the homeowner any good and neither will it help the market.
