16 Dingletown has dropped its price from its April listing price of $6.150 million to $5.950. That’s a start, I suppose, but it brings up an interesting phenomenon: sellers mistaking asking price for fair market price. The builder of this house originally priced it at $8.995 in 2008, which was preposterous, as noted here. It eventually sold three years later in December, 2011 to these owners for $5.6 million. Which wasn’t a bad price – I liked this house, within reason, but was just about what I’d thought it was worth originally (see previous link). But I suspect the buyers looked at that original price of $9 million and figured they’d gotten a steal and felt justified pricing it for $550,000 more than they’d paid for it the year before. Happens all the time, and sellers are disappointed all the time. As I cautioned one of my own clients who was thinking along these lines, he’d set the fair market price for his house when he bought it, not when the seller erroneously listed it for $1 million more.