Good decision, but if you did do the deal IMO it doesn’t appear unethical because it does conform to the current professionally accepted industry standards. It is in fact ethical to ask more than market value for a home, and if you are overpriced you simply will not sell the home. The fact that there are ‘greater fools’ willing to buy, yet unwilling to do their own research, is an indication to me that this is a buyers problem and not an ethical dilemma for the seller. You are not manipulating the final sales price, and are not offering incentives outside of the purchase price that skew the true value of the sale. All you are doing is listing at a high price, and you could potentially get a sale. Nobody is forcing people to tour the home, and 30 minutes on the internet, perhaps with a realtor’s help, will tell you approximately what the property is worth.
Artificially created dead cat bounces, scaring people into buying, false potential pricing – these are all issues that a properly informed buyer should notice, especially in a down market like this where there is plently of time to investigate a purchase and sift through the BS. And besides, as he stated, maybe someone will fall in love with this custom home and pay the premium. And how is it unethical for the realtor to simply tell the seller the obvious – that he will benefit from the traffic that comes through the home. This happens at virtually every single open house and is a widely accepted industry practice.
For those that disagree (almost everyone), what action would be required on the part of the seller and realtor to make this proposal ethical?
