You've done what you professionally could do and they are complaining, stubborn and being unrealistic?! Drop them like a hot potato! Listen to your gut, you don't need them, you deserve better! -Just My Opinion-

Sometimes you cannot fix that type of mindset. It might not be worth it. -Just My Opinion-

Time for the "Which part of "NO" don't you understand?"! Time is money and without proper pricing you are losing money daily! The comps tell the story of what the public will pay. Price it right or pay the price. Choose wisely! Your decision?

There's nothing much you can do. You've done it all. In your shoes, I'd cancel the listing agreement and wish them luck.  Stop wasting time, energy and emotion on sellers who are not realistic and clearly not motivated.

The longer the listing sits on the market the greater the chance of buyers wondering why and developing a mindset that there must be something wrong with it. 

Show them what homes HAVE gotten attention (i.e. have gone from active to pending) during the time frame of their listing.  Use that to show them price points and conditions/amenities that fall in line WITH buyer expectations. 

Then remind them that empty homes still need to be maintained & taxes paid for.

Then ask them to identify what you're not doing for them that would attract buyers.  Everyone's an armchair agent... Few can do it. 

And then... when all else fails, bye bye now!!! 

Every day the house sits on the market is costing them money - the market is speaking loudly to them! Sounds like you have explained it as well as you can but you can't be responsible for their stubbornness

Cut them loose! Let them be someone else's problem. And don't take overpriced listings where sellers won't be reasonable. It's okay to walk away.

They are taking your energy that could be used elsewhere. On more enjoyable and productive projects.

As others said, drop the listing.  Yes, it hurts, because you know it will sell if they will price it right.  And in time, they will price it right, and some other company or agent will get the sale.

But your time is too valuable to spend on this project.  And now it gets emotional and personal; with them blaming you.

Cut your losses, set yourself free!

The market has spoken and told them what they needed to hear but if they are unwilling to listen then there is not much you can do.  Just let it ride or let it go.

The property has already gotten 2 offers in a short time on the market. Encourage offers and keep driving traffic through the door to get the property sold. That is why they hired you Nancy!

Maybe instead of FIRING them! Maybe charge them a flat fee for a period of time. And after a period of time has ended, charge them another flat fee... 

I think after so much time and cost to them, maybe they'll get the hint! LOL

Plenty of people are paying too much for houses these days, however it is best to underprice to start the bidding, this promotes better offers with better terms.

That's tough if they're complaining about you as well.  Did they use you as their agent when they purchased their replacement home?  If that's the case then maybe stick with them as they have been good clients.  Otherwise...

You are trying to use logic to overcome their emotional decision.  That won't work - whether we are talking about real estate or anything else. 

It seems that you have 'forcefully' showed them the situation. No offers = overpriced. Maybe keep reinforcing that just in other words or phrases. I know I've always found out a lot about their thinking when you ask 'why hasn't it sold then'? If you are right, why no offers?

They put themselves in this situation with the new home.

Nancy I'd say adios amigos.  I am way past dealing with stubborn folks who think they know it all.  I dumped one awhile back as I refused to play games with them. You know the market and you know what needs to be done.  As for your team lead.....seriously hand it on over to them and consider a different team as well.

One more thing....this is a line my first broker taught me in my first year in the business.  I had one of these stubborn sellers and I didn't know how to get them to budge.  He said...

Well then, let me refer you to someone who specializes in Over Priced listings.  LOL  I've used that a time or two over the years.  If that doesn't get them to move off the dime - bye bye.

There are two sides of the coin on a strategy for taking an overpriced listing. 

One is to take it, if we don't someone else will.

The other is to pass and let someone else deal with the headache.

Unrealistic sellers rarely see the light. It seems you have done and continue to do all that you can to get the home sold.

I am confident you will do the right thing for you. What we would do and how we would do it may not be the right thing for you.  

It seems like the sellers want (maybe need) a certain price in order to facilitate their new home purchase. They need to understand that potential buyers for their house do not care how much money they "need or want". Buyers will offer to pay a market correct price and no more. In this crazy market, many buyers look at a seller's price as a starting price for multiple offers. The buyers forecast what it will take to actually buy the house. If they see that number as too high, they will not make any offer.

It seems that the house was in contract twice and those buyers backed out. The prices on those offers must have been acceptable. The sellers should use those prices as guidance for repricing.

Ask them how long they are willing to keep the house on the market, unsold, at a price that does not appear to be realistic.

Lot's of great advice from our ActiveRain friends.  I like what Doug Dawes had to say.  I had a wonderful home for sale a few years ago.  It was gorgeous, but my clients wanted to start off high because they were afraid it would sell to quickly.  We kept the price up a little too long and it went from potential buyers saying what a wonderful house to what a wonderful house, what is wrong with it.  To be fair, it was the beginning of COVID too so we had a lot going on, but when a house stays on the market too long, you might have to drop the price below what it is worth to get past that "what's wrong with the house' fear.  Best of luck.  I hope your clients listen to you and you are able to get their house sold.

I'd go with the part of you that wants to cut them loose, but why not just give them an ultimatum?  "I KNOW your house will sell for $____.  If we list at $____, it may even lead to multiple offers/bidding up the price, but it will NOT sell for $_____ and we're wasting our time trying"

If you agreed to list and knew it was overpriced, you kind of asked for this, though : )

Difficult sellers result in difficulty sleeping at night.  Perhaps let it expire (don't ask for an extension) and keep track of all your marketing efforts.  Or, fire yourself.  Sometimes that is the best way to deal with unreasonable sellers.

How long has it been on the market?  Two offers is not bad.  

They are looking at the square footage and thinking it is worth $ per square feet.  3348 above ground but I can't tell how the basement is configured. No comps exist for them today. Backyard pool looks green, with weeds in all the coping and joints which indicates the pump needs replacement and maybe it leaks. The stairs leading to the pool aren't to code and have an open area in the center. Room with jacuzzi the flooring is cracked and they painted over it to hide a mess?  Jacuzzi empty which makes me think non operational. Empty jacuzzi is a safety hazard which a lender will condition for... Driveway has settlement cracks. One bath the cabinets are all chipped, worn, and not loved. The house may need major overhaul. I would contact the people who backed out and get their inspection reports. Get a contractor to price out all the repairs the inspector called. Thus that dollar amount is their reduction. I would not advise them to cover up the needed deferred maintenance just point out that the house needs $x of work. The market is turning. People may have reduction in the money they had two weeks ago in stock account so the number of buyers is going down. If they chase by reducing 10 and 10 more over a month buyers will think they are desperate.  You have sunk costs into them. When you took this listing you committed. "Sold as is" describes they are in trouble. Monthly let's assume the have a cost to carry of $5500 - write that down for them. Don't cancel but when they whine have your speech ready: "if you reduce to $700000 maybe we can sell for $695000."  

Don't take over priced listing. You want to be the 2nd or 3rd agent/broker because you are wasting time... can not help them.

I have taken Sellers out to see their competition to see what other prices are, and that has usually helped with price reductions.

The answer is simple if you approach it that way. They are hoping too much for this sale to help with the other sale which is reasonable but not coming along. I sense they do not like the solution costing them "projected" loss and how, in their opinion, an agent will so easily go to this as a remedy even if that is the right way to go. So, we need to work on the HOW part. There is a lot of dynamics going on in your interactions and it would be helpful to discuss them one at a time. Q and A encouraged. Then, at another time, bring up another subject. Remember, this is all new to them and you are buying into their beliefs willingly or not. This is their only chance at the big money and for the best change of life they will have. Hear them out and resist the temptation to argue or disagree. When you come to understand them, (they will know) judgement will cease. Then, a bond will form...Feel their pain, fear and reaching out for help. Then, it will happen

sounds to me like the first thing to address is "the complaining that I am not working for them" I would have to know more than general complaint what not working for them entails. showing what you have done that you told them you would do. if their claim is you are not working for them, it leads me to think at this point, they do not trust you and that part needs fixed before they will actually listen to any corrective action such as price reduction. if the trust cannot be repaired, as others have said time to walk away. sorry it did not work out Mr. Seller but I have done everything I told you I would do (and more, if applicable). In this Sellers market if you are not getting any offers when people are paying over asking for reasonably priced property, it means yours is not reasonably priced, and the longer you wait to adjust, the worse it is going to get for you.  At this point you are no longer looking for a serious buyer, you are waiting for a fool with money, and there ain't that many of those out there.  You can wait as long as you can stand it but unless you are being serious about selling, I'm not going to continue to invest my money and time to wait with you.

You are providing a SERVICE not an outcome.
When an agent marries their service to the outcome, the become overly inflated with their importance.
It IS NOT YOUR JOB TO PURSUADE OR MANIPULATE.
An agent should understand the full business potential of that house that may be 50% overpriced. Too often ego and the stand box protocol compels an agent to marry the outcome and make 'commission focused' decisions instead of business decisions.
What does it matter to you if the house sits on the market for 6 months?
In the situation you describe, it matters only to the seller and their intended purchase. You have a HIGHLY motivated seller.
But why do you offer only one solution for which they have already been warned, "LOWER THE PRICE."
As time becomes more critical for the seller, package solutions, a variety of solutions that allow them choice even if the outcome is what seems to be a lower SOLD price.
Weather the house sells or not your business will benefit if properly implemented. If the seller is to benefit they must TRUST their hired professional and take their advice.
Give them choices and their trust will increase.
Present only one option, manipulation is perceived, trust plumets.

Sellers can be emotionally attached and blind to reality.  You can show them the comparables, what's selling, their prices and their condition and the seller may still think that their 4 inch tile squares are better than the solid quartz counters.

You can get feedback from other agents, talk to agents with buyers in your seller's price range and see what their feedback is.

Present it all to them.  If the facts don't sway them, then it may be time terminate your listing with them.  Since you are working in a team (according to comments below) and your team lead does not see the issue, I'd suggest letting him take a swing at it.  Present him with the facts and figures and what the buyer feedback has been.

If you suspect that your offers backed out because they found something better, has it been 30 days since that happened?  If so, look for any closings in your price range where that agent represented the buyer.  That's not definitive proof that the buyer bought that one... unless the county recorder's office is fast and has the records updated with the buyer's name already, but it's what we call a "very strong logical deduction."

You can't always.  Just had it happen in our office and they finally listened when the next agent told them it was too high.

Don't waste your breath if they're stuck on price. You might get more offers.

 You could ask them instead of dropping price, would they consider any incentives, like paying for 2 year home warranty, closing costs, paying 6 months hoa fees in advance, immediate occupancy, etc.

Show them some comps, take them to homes that are on the market for less and show better. If that doesn't work, it might be time to let them go.

Start getting some written Buyer feedback that you can share with your Seller clients so the information is coming to them from a third party. That should help. Also, keeping giving them comps showing homes very similar to theirs and the actual selling prices.

Put as much effort into the sales as the seller makes the house saleable.  Promoting a dead horse is fruitless.  Keep updating weekly and asking for a price reduction.  Hopefully you have a long term contract.  Perhaps you'll end up referring it to another agent and get paid if the seller finally wakes up.