These answers are all excellent. I advise clients to relax and try to release all excess emotion especially if I see they are clearly smitten by the appeal of an exceptional property - or one they percive as exceptional. I let them know that if a home is really overpriced, we are dealing with an irrational seller and we may not get the house - at least the first go round. I have had to tell unreasonable sellers "thanks for your time", only to be contacted a week or two later after they had time to rethink things - unfortunately by then we often have an offer on another property.
I will echo Mathews point about submitting CMA data or other market analysis with the offer. When my clients like any home well enough to make an offer, my goal after determining the real value, is to forward the listing agent such compelling and irrefutable data to support our offer that the listing agent often is left with little recourse but to actully sell our offer to their seller. That is particularly easy when the agent knows they took the listing at too steep a price.
In this market, as Hank mentioned price has to be realistic with recent market sold comps and even then, your home better stand out from the crowd. There are simply too many options to pay more than a home is worth - and even if you are willing to overpay, the home still has to appraise.
In closing, I would like to ask - how did you determine that the property in question "is significantly overpriced"?
Robert A. Whitfield
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