A house is worth EXACTLY what someone else is willing to pay for it. If they can get $1.4mil for it, more power to 'em
I have neighbors who put their house on the market for $1.2mil knowing they probably wouldn't get it but figured if someone was willing to pay, who were they to turn it down? It's at $800K now. They are in no rush to move and will probably not sell unless they get that. Their biggest problem is that it is by far the nicest house in the subdivision on the largest piece of land. Always buy the worst house in the nicest area