Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I noticed a local agent has made many quick sales in the neighborhood and on a few I suspected that they were quick sales because they were priced low.
I met with this agent to discuss my property and she blew me away with what she thought I should list my house for, I think her strategy is that she prices low and expects multiple offers to bid up the price. Have you all heard of this or is it unethical to not try and get the most for clients?
Met with another agent and they felt I could ask more then what I was trying to sell my house for but I noticed this agent was trying to say if we priced we would get ask or multiple offers.
I almost feel like agents in their sales pitch to get you to sign with them try to get you juiced up thinking you will receive multiple offers and get the property bid up- my personal thought it bidding wars are the exception not the rule. It really is quite an annoying process to screen agents.
It depends upon where you live.
In greater Denver, the current tactic is: list at $10K below market. Take multiple offers over the weekend and close at $20-50K over list.
As Dave said, the effectiveness of this strategy depends upon how "hot" your local RE market is. Where I am, we're currently in a STRONG seller's market. So generally we price low to encourage multiple offers. It's an incredibly effective strategy if done right because when you get people's competitive juices flowing the put in higher bids.
As Dave said, the effectiveness of this strategy depends upon how "hot" your local RE market is. Where I am, we're currently in a STRONG seller's market. So generally we price low to encourage multiple offers. It's an incredibly effective strategy if done right because when you get people's competitive juices flowing the put in higher bids.
Agreed.
It's not simply "pricing it low," either, but JUST low enough that buyers recognize it as a deal and then pounce, bringing the inevitable bidding war.
Don't try it if your property isn't relatively move-in ready and free of potential environmental negatives like train tracks, a super busy street, bad neighborhood etc.
My first agent was like this. We went back and forth for several days on the price. She was a top performer so I deferred to her. My house had 5 full price offers after two days. Was the price too low - uhh yes it was.
Some agents just focus on the volume and quick turn and don't want anything challenging. Your person may not be like this but use your own judgement. You can always lower your price but you can't raise it.
I noticed a local agent has made many quick sales in the neighborhood and on a few I suspected that they were quick sales because they were priced low.
I met with this agent to discuss my property and she blew me away with what she thought I should list my house for, I think her strategy is that she prices low and expects multiple offers to bid up the price. Have you all heard of this or is it unethical to not try and get the most for clients?
Met with another agent and they felt I could ask more then what I was trying to sell my house for but I noticed this agent was trying to say if we priced we would get ask or multiple offers.
I almost feel like agents in their sales pitch to get you to sign with them try to get you juiced up thinking you will receive multiple offers and get the property bid up- my personal thought it bidding wars are the exception not the rule. It really is quite an annoying process to screen agents.
They don't care how much you get for your house, they only care about making a sale and getting their commision.
But many people think their home is worth more than it really is. If you are not in a hot market you have to wait for someone to want it and be willing to pay what you want for it.
Thanks for the comments. The agent I will probably go with seemed more in tune and said that I may not be including an upstairs partially finished attic space in my square footage and also feels it could be considered a 3rd bedroom although I'm not sure on that point as I thought you needed certain things to be considered a bedroom such as closets. Not sure though.
The first agent which pointed out all the negatives ( I appreciate hearing but most were known to me) which could have been to prime me to think the lower price was justified. I've worked in sales & know how it goes but I'm also a financial guy and it's my job to have a handle on the value of an asset & I know what I've got. Of course this agent has a high sales count when you price things low but personally she kinda pisses me off because she is lowering the comps in the neighborhood all to line her pockets besides taking advantage of unknowledgable seller's that trust the agent is working to get the most for them.
Thanks for the comments. The agent I will probably go with seemed more in tune and said that I may not be including an upstairs partially finished attic space in my square footage and also feels it could be considered a 3rd bedroom although I'm not sure on that point as I thought you needed certain things to be considered a bedroom such as closets. Not sure though.
.
A bedroom must have a window. Some older homes may have a bedroom without a closet, and you can always build a closet in the corner of a room easily.
A bedroom must have a window. Some older homes may have a bedroom without a closet, and you can always build a closet in the corner of a room easily.
This is regional. Some area's require a window, a closet AND a door to call it a bedroom. Others only require two of those three.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
