Even after 5 years or so of declining prices in my market, it's mind boggling to watch agents, many of whom are not local to the market, taking listings at prices which are very clearly bloated and overpriced. I truly think agents are walking into the homes of sellers and they ask the seller how much they want, kind of like what they do on Pawn Stars. "How much do you want for this.?" The seller says $250,000. The house is worth $200,000. The agent gets them "down" $20,000, feels a sense of victory, and walks out with a listing for $230,000. While it's $30,000 overpriced now, it's possible that it will be $35,000 overpriced with another market "correction".
My comment to this type of agent: You are a walking mess. You have no right to be in the real estate business. This is exactly how NOT to price a home, and all you are doing is setting your client up for failure, and cluttering the market with garbage, unsellable inventory. which , of course, creates more overpriced sellers because you were too damn lazy to figure out what sellable local listings are and have recently sold for. You are wasting everyone's time, including yours, which doesn't seem to have much value, anyway. Sorry to rant, but this is almost an epidemic. What the seller paid for their home has zero (ZERO) to do with today's market value. Ignore what they paid.
So, before you make this mistake again, preview a few properties. Spend a couple hours on researching what the home is truly worth. Take your time. And if you have made a huge mistake like this, own up to it and tell your client, immediately.