Appraisers pay attention to listings and they pay attention to the relationship between listing and selling prices on the closed sales. In an increasing market where sale prices are routinely in excess of the listing prices we tend to value those properties at the leading edge. When the markets are in decline and the listing prices are lower than the sale prices then we go to the edge of that trend as well.
Appraisers know from experience that the market doesn’t move so fast. Buyers always have alternatives and a single conversation with one of the competing brokers will bring your strategy to light. Once a competing broker says there’s been a lot of interest but you guys aren’t really interested in selling then the jig is up.
In order to manipulate a market – which is what you’re talking about here – you’d have to control enough of that market to convey those false expectations. I don’t think it could be done.
