Does your agent “stand in your shoes?”

By Don Dunning | May 14, 2010

In the overheated real estate market of 2004 to 2005, many buyers paid outrageously high prices for properties that were not special in quality or location. This included numerous ones that were decidedly underwhelming. Now, a plethora of purchasers are either victims of foreclosure, have sold for large losses or are paying mortgages on houses worth a lot less than their total loans.

Conversely, in today’s much weaker market, where prices have softened substantially, we see some homes listed at unrealistic amounts. These are the ones that sit unsold. In a number of situations, overpriced properties that did not sell were taken off the market and are now back on at equally improbable figures.

We can ask: “What advice, if any, did the agent give his or her buyer or seller?”