It seems that you may have answered your own question. The bottom-line is that there is analysis and experience that must be presented to a seller or a buyer to substantiate the price point of a property. It is unethical for a broker to list a property that is grossly overpriced.... as well as quite dumb on the broker (or agent's part).
With regard to purchase prices, in times of the rush by the herd toward a particular segment of the market, there is a "greater fool theory" that seems to rise above common sense. During a severe down-market there are the "bottom-fishers" ready to move in and take full advantage of one's need to sell, whether that be a bank REO property or a down-in-the-luck owner.
To be able to price correctly in up and down markets is a talent honed by experience. As professionals in our field we should take great pride if we have honed our talent. We are entitled to take as much pride as commercial real estate agents or brokers as do successful lawyers, doctors, accountants, financial planners and financial manager in their profession. Good Luck George…..
Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855
Nov 4, 2010