A Dishonest Market Proposal -- Who really loses?

I must say that this week I have had two instances of dealing with agents that surprised me.  I work on the principal of always trying to expect the best from people, and NOT the worst, which is why I was taken by surprise.  Because I do have access to data, and because I am a very data-driven real estate agent, I can spot a problem  pretty readily.  For an uniformed seller though, this can put that person at a huge disadvantage when they are being lied to.  It may sound like music to a seller's ears, because they are hearing the numbers that they WANT to hear.  But the reality is that they are hearing the Siren's Song. 

Yes, I know "lie" is a strong term, but that is what I believe happened this week.  Lying to get a listing is one of the most unscrupulous ploys an agent can use, and it completely deteriorates my trust in that agent when I see it happen.  Let me explain.

I received a call this week from a seller requesting a market analysis on a home he wishes to sell.  The property is in a subdivision of $120k-$180k homes, where there is still new construction to compete against.  The subdivision is bordered on two sides by a train track and a major thoroughfare.  The house also backs to the thoroughfare, and is within less than a block of the railroad tracks, creating two major obstacles to a sale.  There is nothing that can be done about a poor location except to address it with correct pricing.  I have a saying that "Any objection can be overcome by price".  This is true regardless of the item you might be trying to sell.  

I  toured the home, made my notes about the repairs that were necessary (given that the home is 10 years old), and created a summary of my findings in a market report.  I make it my practice to use the best data I can find, but also the most HONEST data, as the intergrity of my market analysis is critical to the intergrity of my business.  

I made my presentation to the seller.  He was completely appalled at my suggested list price range, which did not surprise me because I could see the price where he had the home listed two years earlier (and also where it did not sell).   What I was equally appalled by was the fact that a competing agent had already ASSURED him that he could sell the home for 14k more than my analysis showed, and this was without her even SEEING the home.  I pointed this fact out to the seller, but he was still reeling from the actual data I was presenting to him.

I can speculate that Mr. Seller will likely list with the agent who tickled his ears so she can put a sign in his yard.  I also have no doubt that this house will sit, and sit and sit.... priced unrealistically high in hopes of Mr. Seller getting the dollar he has in mind, and the dollar the agent has so readily assured him SHE can get.   If that data was there, and I believed in my heart that she was not just trying to plant another sign for her own advertising benefit, then I would certainly be able to swallow the pill of honestly losing a listing.  I don't mind losing to an honest agent.  I do NOT like losing to dishonesty though.  It hurts the sellers, our market, and also the reputation of those of us in the industry who are trying to hold to a higher standard in our profession.