Post # 1
I’m hoping that some realtor/real estate bees can give me some insight here!
The property market in my city is insane right now! Homes are selling before they even hit MLS, people are lining up outside for viewings just to find that the home has already sold, and very often it’s over the list price. They house we have right now is in a really desirable location, and we have actually had people knocking on our door asking us if we are willing to sell. We’re just starting the process to build a new home, and will most likely be selling our home in around 3-5 months.
A home just listed in our neighbourhood, it’s a very similar layout to what we have, same upgrades but it’s around 300 sq ft smaller. They have listed it for around 20% less than what 3 realtors have told us should be our absolute minimum list price! And even then they think it would go for over the asking price. It’s the only home in the area like it for sale, so that would be our only comparable, which makes me nervous. When the market is so crazy, why list so low?! Do you think they’re just trying to attract more offers and sell way over list price?
Post # 2
orchidaloha: That home won’t be your comparable until after it sells, then the selling price is the comparable.
My bet is that they are luring people in with the low price and want a bidding war.
Post # 3
orchidaloha: they want a bidding war – it’s a sleazy, but very common, practice. By pricing it really low, they get lots of interest and people find out there are multiple bids and pay more than they should.
Post # 4
MsGinkgo: julies1949: That makes sense, thanks ladies! It kind of freaked me out when I first saw the listing.
The builder just sold their last two that are the same as what we have and they sold for about 30% higher than what this one just listed for. Around here (I don’t know if this standard everywhere), brand new places usually go for a little elss than preowned homes so their low price makes no sense… until I think about a bidding war and just trying to attract buyers.
Totally sleazy! My friend just bought a place (after making 11 offers that were all declined) and the biggest frustration she had was the low pricing to entice a bidding war. Just list it for what you want!
Post # 5
Yep, bidding wars are a lousy practice. I was an office manager at a real estate firm for many years. It sucks when agents use thse tactics.
Post # 6
orchidaloha: I agree, they might be doing this just to create interest and a bidding war. Or maybe they’re just really really modivated sellers, and want it to sell quickly, and not draw out the whole process so they can move on.
Post # 7
orchidaloha: Is it possible that there is something wrong with it that most people dont see? Is there a foundation issue, water issues, etc? I ran into the same thing when I was buying, thinking “wow this house looks great online, but why is it so cheap?!” after walking in and seeing foundation cracks, and flooded basements… I then understood.
Post # 8
Yeah I agree, maybe there is something wrong with the house. Maybe it was not well maintained. Maybe there are heavy smokers who live there, with a lot of pets, who never clean up after themselves. Maybe the foundation has issues.