What effect does a high listing price typically have on buyer interest?

When a property is listed at a high price, it often leads to a decrease in buyer interest because potential buyers may perceive the property as unaffordable. Buyers generally have budgets and price ranges they adhere to, and if a property is significantly above their means, they are less likely to consider it, regardless of its features or potential value. As a result, a high listing price can create a barrier that discourages inquiries and visits, reducing the overall appeal of the listing.

This situation can be particularly pronounced in markets where buyers are sensitive to pricing, and where they may opt to look at other properties that offer more perceived value for their budget. Also, if a high price does not align with comparable properties in the area, it may tend to repel buyers who are looking for competitive deals or reasonable market rates.