[mathattack]

Would you trust a real estate agent who is paid only if the commission occurs? Both the buyers and sellers bankers only get paid on a transaction. Paying for the time can give an independent valuation. Also, many times valuations don't impact transactions.

[brianwawok]

That is kind of how it works when selling a house with a real estate agent.. they only get paid on a sale, and they went to sell as cheap as possible so they get their money.. see https://www.youtube.com/watch?v=17jO_w6f8Ck

[mathattack]

That's my point - you don't trust them. And shouldn't trust investment banks who get paid on transactions for coming up with a correct price. (Hence you call McKinsey for the 2nd opinion since they get paid on time rather than transaction.)

[brianwawok]

> That's my point - you don't trust them.

Actually most people DO trust them. I would eat my hat if 90% of people don't agree to sell their house at what the listing agent suggests.

[mathattack]

Fair enough. Maybe I'm just the cynic. The real estate agent trying to sell my Mom's house came up with a dozen reasons on why it should sell for mid-300s. I did the analysis on the same data and came up with mid-400s. We'll see where it lands.

[brianwawok]

Ya. Usually what it comes down to is you need to wait. I bet your agents price would sell within a month.

I asked for a higher price on my house, and it took about 90 days to turn it over... was worth the wait though, say 15k more in my pocket.