It occurred to me a while back that having a listing that is overpriced is actually nearly as bad as not having a listing!   Seller's can be demanding, and some are high maintenance (redundant, I know), but ALL tend to want their house sold!!!   Of course, Realtors wouldn't take listings if the sellers aren't really motivated to sell, would they?   Well, least not on purpose. 

Particularly with residential real estate, however, proper pricing is about 10% science and 90% art, because for many buyers, there is definitely an emotional component which will cost justify paying more what they might otherwise, were they a "prudent investor".  

For example, I toured a house this last spring on our agent tour.  The listing agent really wanted to know the price at which we thought the house would sell.   I estimated the ultimate sale price at full $17,000 BELOW the current list price.   I know the area extremely well, since it was in my farming area and it was only a few houses from my own home!    The house did sell, and it sold for only $5,000 below list -- which is $12,000 above my "gut level feel" for market value.  That's what can happen when you wing it on pricing. 

Yet, this is the "art" part of pricing.  It's by keeping in touch with the market that lets us get within 10% of the ultimate sales price.    The science part is the last 10%.  That's the part that, 1) takes into consideration that there are out-of-town buyers coming into a market who will think our prices are cheap, and 2) that the buyer's agent won't do their own due diligence to "discover: the actual market value.  Who can really do that - know the actual sale price?   How do you value the "ready, willing, and able" factor, and who am I to say these folks were wrong to pay $12,000 over what should have been (in my book) the actual value.    

Anyhow, the point is that if you think you're seller is way high on pricing, establish a pre-determined price reduction strategy as an addendum to the listing agreement.   At 30, 60 and 90-days, a price reduction will be implemented if there have been no acceptable offers.   This helps to move the product through the system. 

It's just a thought, particularly if you've really done your research and you know you're right about price.  And, it allows your seller to "test the market" but to have a plan of action if the marketplace continues to reject their offering. 

I'd be interested in any feedback on this methodology.