I walked away from a listing last week. The home, while beautiful, is priced about $20,000 above everything else in its desirable neighborhood. It's on a better lot than some of those homes, but then again it is also smaller without any finished basement space. And since they wouldn't lower their list price, I didn't take the listing. I knew I couldn't truly represent them when I didn't believe in the price.
I know that when you take their list price and deduct all fees and taxes, they probably are making less on the home than it cost them to build. The problem is...buyers don't care. They aren't going to over pay on current market values to help out a seller. My job is to consult with people on how to sell the house. What would sell that house is a price drop. Their options, therefore, are sell the home for a loss or wait.
These are tough times to be selling in those higher price ranges. The only things seller control are price and condition. If the location is good and the condition is great, the only thing left to play with is price. If you must sell, and your home isn't, you probably need to lower the price.