Is low price discourages buyer to buy model?

I personally believe lower price on good models is bad for the seller and just that seller alone.
Probably some other sellers feel the need to also lower price in response, but then again that is only bad for those sellers.

Basically they all just devalue own work.

Professional buyers just pay the correct price with no problems and most here are professional buyers. They look for quality models and trustworthy artists.

Low price usually means the seller is not confident about his work (maybe amateur or inexperienced) and work is probably full of error's (something making it have less value) or if it indeed looks very good, then its probably stolen model, etc. Unrealistic low price just makes things suspicious and make seller look for something more trustworthy.

There are lots of sellers here that have problems selling and then they try all sort of things (including lowering price to insane low levels) and it just not helps.

The only thing that works is making good quality models that are not there jet and correctly priced.
Make the presentation as detailed as possible and provide good renders.

many people sell good models in low price

Ask yourself how the best model can be the cheapest and you'll have your answer.

If they consider if the model is stolen - yes, otherwise - no.
Many customers think that if they (for example) buy a stolen $2 illegal copy of a model they will have an excuse if they are sued, but in law not knowing is not considered as excuse and they will still be found guilty (they can on their turn sue the one who bought it from, but that will be another separate case).

Well it could depend from artist to artist? I know few folks that are really good but they're just starting out and they don't have much confidence in their work or don't have much inside knowledge for price or rate (I come in this category) and some belongs to countries like india where cost of living is so low that if you make 300-400$ per month thats more than enough to make a living.

I saw a lot of good models with low prices. I think it's up to you. The preview photos can help the buyers to understand if the price is right for the model, I guess.

At the moment I try to sell my models as low as possible to gain any sell and then reviews than I would like to raise the prices.
But I don't really think that this works out as planned because if a customer buy something, they never write a review, I think they don't even read the description.
In the description of one of my models I wrote a Discount Code, so they can save 1$.
Never used, always paid the full price.
And if you try to encourage the customer to write a review with a personal message incl. a discount code of 5$ they never write back.

for me if you lower the price to far. and stil not making any sales then this ist the market for you... model something people really need.. i focus more on spare parts and costumized part for real world objects