I had interviews with people that were overqualified; I told them it is their choice if to take the position or not. I learned that overqualified people tend to leave after a few months to something more interesting.

Also "I want too much money" is a thing if all you need is a low level tech and the applicant is an expert in the field. It is not worth paying for expertise that you will not need. For example I hired a guy to do some very boring, routine cleanup in some databases; if I would hire a real DBA and pay double, what for? In this case I pay for the work and result, not for the expertise.

But to be fair I always tell the applicants what is the situation and give them the choice. I know it is a very rare case in the industry.