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Do you have a Heat Pump in a cold climate?
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It is not less efficient if it's oversized, that is absolutely not true. It will just run less to keep the room at the desired temp. It's actually more efficient to oversize because they have to run less. Running full on constantly to try to keep the temp, which is what happens if you undersize, it's what's less efficient. You actually want to aim to overshoot your needs by 30-50%.
Have any kind of source? Every source I've seen says that running oversize is worse. In my own experience, it led to humidity problems, too. In fact, every source in seen says its better to undershoot than overshoot.