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Old 04-24-2018, 02:58 PM
 
Location: Columbia, SC
8,858 posts, read 17,468,555 times
Reputation: 6240

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Quote:
Originally Posted by photogal9 View Post
$125K-$128k would of been a good deal, it could of listed up to $134K on the high end.

If it were my property, I would have listed it at $140K and not worried about it not selling. I don't play games, tho.
Overpricing a home can result in a stale listing netting a lower sales price. I usually give a 10k range for FMV until we get into a higher price point. Using your #'s I could expand that to 122,500-132,500. I usually then have the seller price it within the range based on how quickly they want to sell. If they listed at 122,900 they picked the low end of the FMV range but still within FMV.

From an outsider looking in, going only off the info provided, I don't think this is a scenario with a stupid low asking price by a seller with the intent of selling way over asking price. That happens in CA when a seller lists a $500,000 for $400,000 and waits on the offers to run the price up. I actually thought that's where you going with the thread title.

If you listed at 140k expecting to negotiate down to 134k, a buyer could flip your comments and say you were playing games as a seller by overpricing.

Anyway, best of luck on your home hunting and thank you for the replies and info.
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Old 04-24-2018, 03:00 PM
 
Location: Here and there, you decide.
11,591 posts, read 22,710,836 times
Reputation: 3888
in my development in Vegas, nice home listed at 335k, comps 315k-325k, sold 356k cash offer. thats what I am counting on
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Old 04-24-2018, 03:43 PM
 
Location: Raleigh NC
7,798 posts, read 6,155,029 times
Reputation: 6913
Quote:
Originally Posted by photogal9 View Post
$125K-$128k would of been a good deal, it could of listed up to $134K on the high end.

If it were my property, I would have listed it at $140K and not worried about it not selling. I don't play games, tho.
actually, that would be playing a game. listing it $8K above your expected price is no better than 5K below the last sale.
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Old 04-24-2018, 03:44 PM
 
Location: Raleigh NC
7,798 posts, read 6,155,029 times
Reputation: 6913
Quote:
Originally Posted by Brandon Hoffman View Post
From an outsider looking in, going only off the info provided, I don't think this is a scenario with a stupid low asking price by a seller with the intent of selling way over asking price. That happens in CA when a seller lists a $500,000 for $400,000 and waits on the offers to run the price up. I actually thought that's where you going with the thread title.


Anyway, best of luck on your home hunting and thank you for the replies and info.
this.
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Old 04-24-2018, 03:46 PM
 
170 posts, read 68,762 times
Reputation: 522
OP, I have walked away immediately when this game was played with me in the past. If your market is not "hot" there is no reason to stick around unless you absolutely know this is the only property you will be happy with. In certain parts of the country this is just the way business is done as there is a dearth of inventory. But if that is not the case with your area, I would either keep my original offer as is or withdraw.
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Old 04-24-2018, 04:40 PM
 
Location: Columbia, SC
8,858 posts, read 17,468,555 times
Reputation: 6240
Quote:
Originally Posted by kickingthebricks View Post
OP, I have walked away immediately when this game was played with me in the past. If your market is not "hot" there is no reason to stick around unless you absolutely know this is the only property you will be happy with. In certain parts of the country this is just the way business is done as there is a dearth of inventory. But if that is not the case with your area, I would either keep my original offer as is or withdraw.
Why do people always accuse the other party of "playing games"? I don't think very many buyers or sellers are playing games. They have a motivation of some sort to buy or sell a property. The buyer and seller sometimes have a difference in how they choose to operate but nobody is "playing games".

Aside from that, this is a business transaction. Make it a business transaction and keep your emotions in check. My goodness, how many offers never became a contract and how many contracts have never made it to closing because of someones emotion and/or pride? Don't be that way. If you want it make your best offer and see what happens.

I know I've had too many transactions in the past where someone didn't get a property because they thought the other property was playing games. They didn't believe there was another offer or pulled out because there was another offer. A home can sit on the market for year and get 3 offers in a day. It's not logical but that's real estate.

It's business. Offer what it's worth. You get it, great. If not find another property. Life goes on but regret the decisions you made, not the ones you don't make.
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Old 04-24-2018, 05:40 PM
 
595 posts, read 378,367 times
Reputation: 1021
Quote:
Originally Posted by BoBromhal View Post
actually, that would be playing a game. listing it $8K above your expected price is no better than 5K below the last sale.
I'll respectfully disagree with you on that.

Majority of replies on this thread were to the effect of, "As a seller you want to get the most money." Not verbatim, exactly the desired net profit.

Thanks for wishing me luck on finding property, that was nice of you.

Last edited by photogal9; 04-24-2018 at 05:56 PM..
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Old 04-24-2018, 05:48 PM
 
595 posts, read 378,367 times
Reputation: 1021
Quote:
Originally Posted by Brandon Hoffman View Post
Overpricing a home can result in a stale listing netting a lower sales price. I usually give a 10k range for FMV until we get into a higher price point. Using your #'s I could expand that to 122,500-132,500. I usually then have the seller price it within the range based on how quickly they want to sell. If they listed at 122,900 they picked the low end of the FMV range but still within FMV.

From an outsider looking in, going only off the info provided, I don't think this is a scenario with a stupid low asking price by a seller with the intent of selling way over asking price. That happens in CA when a seller lists a $500,000 for $400,000 and waits on the offers to run the price up. I actually thought that's where you going with the thread title.

If you listed at 140k expecting to negotiate down to 134k, a buyer could flip your comments and say you were playing games as a seller by overpricing.

Anyway, best of luck on your home hunting and thank you for the replies and info.
I stated previously that some of those comps were over 6 month's old. Would you agree the market has increased in the last 6-8 month's? The $128K was from January of this year, I know the markets increased since then.

What constitutes a stale listing, 1 month, 3 month's? I'm honestly curious as this could direct me on some listings that haven't sold in 30 days. My market area has shown properties go contingent or pending within days of listing.
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Old 04-24-2018, 07:03 PM
 
1,780 posts, read 882,155 times
Reputation: 3813
Quote:
Originally Posted by Brandon Hoffman View Post
Why do people always accuse the other party of "playing games"? I don't think very many buyers or sellers are playing games. They have a motivation of some sort to buy or sell a property. The buyer and seller sometimes have a difference in how they choose to operate but nobody is "playing games".

Aside from that, this is a business transaction. Make it a business transaction and keep your emotions in check. My goodness, how many offers never became a contract and how many contracts have never made it to closing because of someones emotion and/or pride? Don't be that way. If you want it make your best offer and see what happens.

I know I've had too many transactions in the past where someone didn't get a property because they thought the other property was playing games. They didn't believe there was another offer or pulled out because there was another offer. A home can sit on the market for year and get 3 offers in a day. It's not logical but that's real estate.

It's business. Offer what it's worth. You get it, great. If not find another property. Life goes on but regret the decisions you made, not the ones you don't make.
With all due respect, whether you call this a "game" or a business strategy, it amounts to the same thing.

The OP described a property in which the agent was attempting to represent both sides, buyer and seller. If we are talking business strategy and leaving the bad word (game) out of it, we need to ask, who stands to benefit most in a transaction where the realtor represents the buyer and the seller? As a real estate professional, would you negotiate a LOWER price for the buyer in this situation, just to be fair? Or might you try and create a false sense of demand with a "come back with your last and best?"

As a few have said, in some markets there is no choice but to bid against multiple offers on each property. But if this market is not such a place, the OP is well justified in thinking that the realtor is attempting to incite a feeding frenzy with a low price and the subsequent "strategy" of "I am reviewing last and best offers at 5 pm on Sunday."

As a buyer, I make it a rule never to negotiate against myself. If I get a whiff of a lukewarm property in a cool to lukewarm market with a sudden spate of offers and demand for last and best, I walk. I don't even waste a moment more of anyone's time. I know there is more out there for me to look at. And every buyer knows that the wait to hear back on an offer can be stressful and distracting. So why even put yourself through that?

As a seller, I have distaste for the creation of a false sense of value to the buyer. I have had agents suggest such strategies to me and I have always pooh poohed them. I think a correctly priced house, if its in demand, will elicit multiple bids on its own. Really, all you need is one good one.

So OP, agents may not like the "game" word, but that is exactly what this is.
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Old 04-24-2018, 10:25 PM
 
220 posts, read 75,206 times
Reputation: 838
I recently saw a property for sale on MLS, just right for what I needed and inadvertently started a "bidding war" haha. Was the property priced too low? Not by much IMO but low enough to be interested to call the listing agent.

"I have a contract on that" he said. "Then why is it still on the MLS?" I asked. "Talk" about a contract is not a contract. Listing agents just want a fast contract and to get paid as soon as possible, they don't care that much about getting another $1k or $2k etc for the seller because 6% of a lower list price is good enough esp. when they can get full commission as the lister and seller if they have a buyer in hand as soon as it hits the MLS.

The bidding "war" consisted of our bid and only our bid. We added a couple thou over the list price because it was just what I needed and although not irreplaceable it would take several months to find another similar property as area prices go up.

One thing I remember from "Rich Dad, Poor Dad" the infamous real estate advice book: Profit is made when you buy a property, not when you sell. Best real estate advice ever.
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