It's difficult because most times the firms collecting have all their fees riding on you paying this inflated amount.

Your property appreciates with time as inflation and demand play their part.  

The issue is not greed, rather fairness and inflated prices. 

We would then be cash flowing $800 not accounting for the rent inflation.

Now 7 years later that dollar today is not worth the same then so it would be diminished returns with inflation.

Typically, if the sale price increase is due to inflation or general market trends, the assessment will remain the same (although under-assessed) and will be increased during the next city-wide reassessment.

Figure out how much you want :)  The great thing about RE is that it works very well with inflation.

Those whose homes have not inflated would be less inclined to sell.With that said, yes, if I had a $1m house in Toronto, I'd sell it and buy a 100k cottage in eastern Ontario and be done. 8% return on my remaining 900k can buy a lot of snowmobile and boat gas.

I had one guy texting me over and over with "deals" that were actually MLS listings he was trying to sell at inflated prices over asking price.

People have inflated perceptions of what their property is worth and it is your job as the listing agent to give them a dose of reality.