Well my mom was an agent/broker for alot of years, and she said that if a house doesn't appraise for the high price then banks are not going to lend on it. The banks only lend on what a house is worth, not on a rediculous price that the seller thinks it's worth. Then the only way to sell a 2-3X priced house is if someone buys it with cash.
All so very true. And another thing, you will hardly ever see a wealthy man pay more for a home than it is actually worth, usually the other way around, plus he will use a banks money before he uses his.