Window of Opportunity - When a home first goes on the market, excitement is generated among REALTORS® and they may have a backlog of prospects. If a potential buyer is discouraged by the price and no offer is made, the process starts over.
Shopworn - If a listing stays on the market for too long, the perception is that it's been picked over by many buyers and that there could be something wrong with the property.
Ultimately Sell for Less - Starting the price high and periodically reducing it may cause a property to become stale.
Longer Marketing Period - Homes priced above market value take longer to sell. Even when priced right, it may require a month of exposure, or more, to sell.
House Does Not Sell - As a rule, a buyer simply will not pay more for a home than market value.
Be Cautious of Appreciation - Depending on the current real estate market, waiting for top dollar could actually end up costing you more. Often times home values will appreciate and cost you more in the end if you are considering another purchase.