Two forces drive high asking prices: seller psychology, and the plain fact that every seller wants the maximum the market will bear. This is one place the two of us weight it differently, so you get both reads. The psychology read: no seller wants to believe their home is worth less than the neighbor's, so they anchor to what comparable homes 'should' fetch and hold that number even as conditions shift. Some of it also comes from agents who win the listing by quoting the highest price the seller wants to hear rather than the price the comps support. The rational read: a high ask has nothing to do with equity or gains already banked. Someone who owns free and clear still wants maximum proceeds. Existing equity and a low locked rate change a seller's willingness to wait, and leave the desire to sell high untouched. We land in the same practical place: overpricing tends to backfire. A home priced well above market sits, goes stale, collects price cuts, and often nets less than one priced right out of the gate. A well-advised seller prices at or just under true market value to create competition and multiple offers. As a buyer, judge the home against recent comparable sales rather than the list price, which reflects the seller's hopes more than the property's value.