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Comment by AzzieElbab | Hacker News Reader

Lets see. Assume I am a realtor, I earn outrageous commissions of 2.5%. Does it make sense for me to jack up price of 1M condo by say 15% above the market and spend a month trying to sell it or to lower the price by 10% below and possibly sell two similar properties in the same month?

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But every house that is on the market IS being sold, even at outrageous price, because buyers don't believe the price hike will slow down anytime soon (why would they? this segment of the market is guaranteed to be protected by any government who wishes to get re-elected)

So you, the realtor, will sell every house you got anyway, so why not bump the price while you're at it?

that is classic cause and effect. realtors are just tagging along. I bet even if they make realtors accept second highest price instead of first(aka google adds) the impact would be minimal overall

It isn't the Realtor accepting the price, it is the owner. At least in my state they are obligated to present every offer. Price is not the only dimension to factor in either. Just off the top of my head: (1) inspection contingency (2) mortgage contingency (or how much to make up for the appraisal) (3) timing for closing (4) lease back option

Can all affect what you would select, not just the price.

Yes, it does. Because you don't know if it will take a month, and if you have any confidence (maybe too much) in your abilities, you will likely assume you will sell it quickly. And a second one too.

Its a poor sales person that thinks, "I might not sell one this month..." Not with that attitude.

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