Homeowners Realize Decrease In Homes Value

Many homeowners in my area understand that they won't make as much on their house when they sell as could have several years ago, but on the flipside they will make up the difference when they purchase their next home.

Ouch, sometimes reality hurts.  I had a listing appointment with a guy that was a couple months past due (I specialize in pre-foreclosure short sales) and when I told him what I thought his home would sell for in  our current market of 15.3% unemployment he told me we had nothing further to talk about, he could not believe his house is worth less than what he paid for it a couple of years ago.  So we sat and talked about the market for 15 minutes or so and I left.

He called me back yesterday and told me I was unethical to solicit his listing and then suggest it was only worth a fraction of what he paid for it.  He listed with another agent for 3 times the amount I would have.  So who is unethical?  Tell the buyer what they want to hear and then try to get a price reduction later or be upfront?  It just so happens to be this other agent is not a short sale specialist and I've been told by other agents that she is watching me to see if I am successful doing them before she jumps in...