Price Increases (agent, contract, listing, sellers)

[George Chong]

I don't really get why some listings are being priced higher when they have not gone under contract when it was a lower price. I get it when the property is improved while being listed or if it is being offered by a developer and inventory has dropped - but for the general public

For example, a house was listed for $1.1M (not even close being worth that in my opinion), dropped to $995K, price kept dropping to a low of $549K and now it has had a price increase to $625K.

I don't get it. Can anyone fill me in on why someone would increase the price of a property if it has not gone under contract at a lower price?

[manderly6]

Maybe they had an appraisal done.

[bentlebee]

Comperable sales may reflect prices have gone up.

[MikePRU]

This spring I was seeing a lot of properties come back on the market that didn't sell last spring. Most were coming back at higher prices then they had even initially been listed at last year. Almost every single one of them sold in an instant for more than asking price.

In a normal market, this would be an idiotic tactic. A few years ago, I remember taking a client to see a house. They got 2 offers in the first day. So . . . they decided to raise the price. The house sat for months until they lowered the price back close to what it was originally. It probably ended up selling for close to what was originally offered.

[andrewmatt]

There are many factor why the property price increases depend on the area , government policies and upcoming projects in that particular area try to find out weather any of these factors are there in your area?

[charlie_paige]

I've been wondering this same thing. I've seen homes sitting on the market for a long time that increase their price, and then they still just sit there. It's like they don't actually want to sell it. I don't get it.

[George Chong]

Originally Posted by manderly6

Maybe they had an appraisal done.

But an appraisal price doesn't necessarily translate to a sales price but I see your point.

Originally Posted by bentlebee

Comperable sales may reflect prices have gone up.

But if it hasn't sold and has been on the market...

Originally Posted by MikePRU

This spring I was seeing a lot of properties come back on the market that didn't sell last spring. Most were coming back at higher prices then they had even initially been listed at last year. Almost every single one of them sold in an instant for more than asking price.

I get that but I am referring to properties that have been on the market and have not gone under contract.

Originally Posted by charlie_paige

I've been wondering this same thing. I've seen homes sitting on the market for a long time that increase their price, and then they still just sit there. It's like they don't actually want to sell it. I don't get it.

That's what I am saying too. If your property is priced at $100K and hasn't sold (even if the market is picking up), why would you increase the price

[399083453]

Sellers own the house. They can do whatever they want. Doesn't have to make sense.

[MikeJaquish]

Sometimes sellers will raise the price to get the listing auto-emailed out on MLS hot sheets.

And then, they can lower the price and have it auto-emailed again, showing a big price decrease.

It is a weak strategy for sales, and lame free publicity.

[NinaN]

I see it a lot. House gets listed at a price that covers the mortgage. It doesn't sell. Then reduced to a low price as a short sale. The house goes under contract, but is not "pending" until the lender approves the short sale. The lender approves at a higher price, the buyer cancels, then the agent increases the price to the lender approved price. Happens all the time here.

The issue is that most public web sites often do now show when a house is a short sale, and they do not have the same level of distinction as the MLS when it comes to short sales. There is the never never land between active and pending when the home is waiting for lender approval.