Is there any benefit to list high and sell low?

What is the right strategy when it comes to obtaining listings?  Do you tell your clients what they want to hear in order to obtain a listing?  Is it recommended that you list a property higher then the CMA dictates knowing that you have overpriced it and that it will be harder to find buyers that are ready, able and willing to purchase?

Personally, I don't believe in this theory to list high in order to get a listing and then hope the market will go up.  Well, it might have worked in the past but now is not the time to do so.  I came across a property that was listed over $1,114,000 last year and now the property is on the market for a mere $699,000 and you guessed it; it is now a REO.  The agent is not the only one to blame here.  Sellers are led to believe that their property can be sold for a certain amount based on the advice of the professional, however, they usually shop around for an agent and would it not be tempting to go with the agent who convinces the sellers that they can get more for their property than if they list with another agent?  What benefits does one have when overpricing a listing?  I can think of a few.  The outside for sale sign will be up for months with your name on it as the listing agent; free advertising.  You will get more listings just to name a few.  But what does it do to ones reputation when homes are overpriced and just sitting on the market?  Sellers will get impatient when their property doesn't get a lot of interested buyers because it is overpriced.  The sellers may not recommend your services to others or extend the listing after it expires.  I don't see a long term benefit.  One can not build a successful business in sales without satisfied customers who will recommend you to their friends, family and neighbors.

The bottom line is to price a property for a quick sale and that means that one simply should price it at the top of the Solds and at the bottom of the Actives.  The market dictates the price.  Be honest to your clients.  Nobody wins if the property doesn't get sold.