A good salesperson never drops his or her price. A decrease in the asking price gives the impression that there is something "less than desirable" about the house and buyers will be turned off.

If you do manage to sell your home above its market value, your buyer will need a mortgage. Mortgage lenders require an appraisal, and, if comparable sales for the last six months and current market conditions do not support your sales price, the house will not appraise. At that point, the deal is dead unless the buyer is willing to renegotiate.

By setting the price too high in the beginning you may actually be forced to settle for less than the house is worth in the end.