Realtor Rationalizations
Why would a Realtor quote a would-be Seller an unrealistically high list price?
Because the agent believes it’s the only way they’ll get hired.
The practice — called “buying the listing” — virtually assures that the home will sit, ignored, while it accumulates market time, until eventually the agent broaches the subject of . . . . yup, dropping the price.
Complicit Sellers
As dubious as the practice may be, it only works when the Seller plays into it.
So, instead of vetting Realtors based on their credentials, track record, etc., the Seller picks the Realtor who quotes them the highest asking price.
As I tell prospective clients, there is always another Realtor out there who will take the listing at a higher price than I will.
Marketing Hyperbole
Surprise, surprise, once such an agent has landed the listing, they’ll often resort to hyperbole to attract prospective Buyers.
Their logic?
You can’t sell a home to someone who hasn’t seen it.
Translation: if the listing doesn’t generate showings, it most certainly won’t attract an offer.
P.S.: my favorite example of such dubious logic: ‘if your parents don’t have kids . . . you won’t, either.’
See also: “Realtor Bidding Wars”; “Buying the Listing: Exhibit A;” “Realtor Prayer.”