Quote:
Originally Posted by Electrician4you
Ok
So my old neighbor is selling his house. Listed at 500,000 was in escrow pending (was taking back up offers) then now it had a open house and house is for sale again no longer pending. At 515,000. He said he had taken the offer at 515,000 when he was listed at 500,000.
So why relist at higher price? Doesn't that send the wrong message (To buyers)
As a buyers agent what would be your advice to your client.
As a sellers agent what would be your advice to the seller?
Is it just hey that's the new price take it or leave it!
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The way pretty much an real estate market "works" is highly dependent on what COMPARABLE properties are available at any given point in time. Very like something happened with the "offer" at $515k that forced seller to go from "pending" back to "active". It is similar VERY LIKELY that feedback from the agents and the data available to the seller suggesting that prices are moving up. Instead of hoping for another "offer above ask" it might make sense to just list at higher price...
Of course there are ALL KINDS of local traditions and even potential quirks with the various online searches why it MIGHT make sense to change the price a bit to expose the property to folks who may not be aware there was previously an offer on it...
Good listing agents try to help their clients maximize their sales prices; in all but the rarest situations the best way to do that is to list for the
most that comparable properties would be priced at. There is a little bit of science, some psychology and even some luck that all goes into setting prices that resonate with buyers...
Having had a deal at $515k fall apart the listing agent probably feels VERY comfortable that they could get other full price offers and it simply does not make sense to ask for less. Of course if the the listing is wrong, and offers come in below asking (which in most areas is VERY MUCH part of the traditional back&forth of negotiation) starting a LITTLE BIT higher ought to end up making buyers think twice about how this home compares to those priced higher VS comparing to those that are lower price. There is some science to these sorts of numbers and it is often seen in the using prices that end in x99, of course with most folks using the "range search" functions on the real estate sites and then searching in high to low order the various "old school" pricing tricks are not as useful as simply taking steps to ensure that your listing is "sandwiched" by those that make it look BETTER in comparison --
5 Strategies for Pricing a Home to Sell*|*Reader's Digest
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More to it than that...
