And for all of you complaining about commissions and thinking that's why the property was inflated I can assure you that you are wrong. Perhaps this particular agent was an idiot and did not know the market value of the property but that is a rare instance. Every agent knows a property cannot be mortgaged at above appraised value. It is in everyone's best interest to advise their client of the value of their property based on recent comparibles.
Agents and owners want a quick sale. This benefits everyone. Pricing correctly is key.
As a side note, sometimes you get a client who insists on pricing a property at a high price and nothing an agent says can sway them. An agent has two choices in this situation, walk away and not take the listing, or price it as the owner wants and watch him fall on his face.
As a broker, I can assure you that we work for our commissions. The paperwork, legwork, legal hassles and craziness we put up with from clients makes us worth every penny we earn and then some.