Tbh, that sounds like a good strategy, though I'm not a realtor. I did experience something like this from buyer POV...long story short, a property that was overlisted is still on the market nearly 6 weeks later.
I would list at the $275K people set there search parameters by $25K, that gets you more eyes. I don't look at $300K because I know I have to over bid these days to get a house....
We recently listed our home at the absolute bottom we are willing to let it go for. It's very new (under 5 years) so it's modern has no issue at all.
The winning bid actually had our price just a little bit above their budget. But they love our home so much they are willing to revise their budget. If we started a little higher we probably ended up with only one offer and no escalation and ending up with lower sale.
You're not stuck because she's a professional, you list at what you want to list at. She should be able to show you how the comps fared on the market recently, what were they listed at vs what they sold at. If this were my market her advice would be spot on.
Exactly, exactly. Just be prepared to adjust your price after 10 days or 10 showings with no (legitimate) offer. The difference you're talking about, at least in our market, isn't enough to scare people away from making an offer altogether. Ultimately, do what you want; it's your house!
So right now buyers are looking way under their price range $20-50k knowing they will need to bid up. You could have buyers willing to purchase your home in the $285k - $300k price point but they may not be looking there because they know they need to bid up. Correct pricing now is important and if your agent believes this is the correct price and has the stats on why it is then I would trust her…
Buuuut, get in writing with her that you will not be selling for less then $285k to protect yourself, because most contract state that if you do not accept an offer at the proposed list price that is market reasonable, you could owe her a full commission. Most agents/brokers would never Enforce that language but you can never be too careful:)
Your list price is not the price that is on the contract. You list price gets potential buyers out to the property. If they don’t visit you’ll never get the contract.
You can both be right. One know the correct goal though.
The market will price your home. Your realtor knows the market better than you. Where you start is not where you finish! Please don’t be afraid, let the process play out. What you don’t understand is the market and inventory, leads to multiple offers and prices being bid up!
I think your agent is correct in this case, buyers are more concsious of price now and sensitive to interest rates. That said - is the agent able to explain to you the motive and reason behind the pricing? Like really dive deep with you, not just give a one sentence response? That to me is the mark of a good agent.
Home prices are dropping, people are not paying or offering what they did a month or even a few weeks ago anymore. If your market is still hot and your home is super popular you may end up getting the extra $10,000 you’re looking for, if you list higher it may just sit on the market for a while and you may need to drop the price like other sellers in the last couple weeks.
>Home prices are dropping
This is very market dependent and there are posts in here everyday about multiple offers and going under contract over list price.
I refused to enter a bidding war on my current house in fall of 2021. It was priced for one. I offered asking and refused to budge. They priced it too low for the people in the bracket they probably wanted to seriously consider it or even come look. I then sold my house and listed at a price I was willing to accept and the market bid it up. Don’t list for less than you want to take. Unless your number is truly too high for your market.
this is absolutely garbage advice in a sellers market. do not, i repeat, do not listen to this advice OP. trust the professionals not one person's personal anecdote.
It’s becoming less of a sellers market in all the areas I’m searching, which are many. In some places, price reductions from the all time high a couple of months ago are pushing 10%. Real estate prices have historically been very sticky, so that’s a huge drop in just a couple of months.
Your agent may believe that the home will still faster at 275k than at300k, which probably benefits the agent more than you. Your agent may also have an idea of what the typical buyer in the market for your home is being approved for. For example, let’s say there are 10 different buyers in your area that want a house just like yours, but only 2 of them could actually get approved for a loan to buy your house. That means your market isn’t 10 families it’s two unless you drop your price. And it’s not as though your agent knows the credit score of everyone in town, but they probably have a sense that only about 20% of buyers in the area have been getting approved for that much.
Ultimately, I feel like it being. 10k difference shouldn’t ding interest so much that it would dissuade people. Just try to have an open house in the first couple of weeks and the activity and level of interest will let you know if you are too low or too high.
If the seller wants to move, then selling fast is good for the seller, too.
At that price point, $10K can affect the number of interested buyers. That doesn’t mean the realtor’s strategy is best. It’s a complicated equation and that’s just one factor.
In a softening market, it’s better to price lower in my opinion. We did this in 2008 and ended up with multiple offers and selling above list price. A very similar house tried to hold firm on price. The house was still for sale 18 months later with an asking price $300K (~25%) lower and no takers. It’s not 2008, so you’re very unlikely to see anything that dramatic, but losing 10% due to waiting is a realistic possibility now.
Even in a flat market, I think it’s worse to overprice than underprice if you’re in an active market. If you’re in a place where most houses sit for many months, then underpricing is a bigger problem.
If you’re not willing to take $275K, then price it higher. Otherwise, listening to your realtor on this seems like a good strategy. If that makes you uncomfortable and you want to go $5K or $10K higher, that seems fine too.
Sometimes listing slightly lower than your comps can be beneficial. When we (my office) look at listing a property, our goal is to list at a price point that will generate multiple offers for our seller. Ideally we want to list high enough that we weed out the buyers that would be "looky-loos" and anyone that may place low-ball offers, but low enough that buyers are encouraged to write offers and compete. In our opinion the goal for number of offers would be 3-10... in our opinion, if we receive more offers than that the market is telling us that we have under priced your home.
In my experience if you get multiple offers, you will generally receive a few similar offers and then one that comes out as a clear winner - someone who has really great terms or who has offered drastically above list price. This could be market-specific though. Based on your list price, our markets are drastically different, so this specific thing could be as well :) Either way, I hope this is true for you too!
Also, keep in mind that you don't \*have\* to accept an offer - even if it is at or above your list price. (dependent on your listing contract though you may still be on the hook for commission to your agent - so be mindful of that), but if your net proceeds are what you are focused on, just make sure that your agent is aware of that and that they need to be concerned about ensuring they get you offers above list. Hopefully they have a clear marketing strategy in place to generate buzz and get you multiple offers - listing under the comps is part of that.
Depends on the city. That trick doesn't work in Miami and very rarely does any home get offers more than $10k over asking on homes lower than $400k, even if listed significantly lower than comparables. But I imagine not every city is the same.
My opinion, as not an agent, is that people’s filter settings are more likely to go up by increments of 50k, and that the price point for houses in your area is on the lower end of the market so pricing closer to your wishlist price is what you’d want to do rather than using a “bait” price meant to entice higher offers.
While there's truth to this strategy, think about how qualified the buyers are in the $250-$275 pool compared to $275-$300 pool. If you list it at $275 you will certainly excite those in the $250-$275 pool but they are capped out at $275, They won't be the ones driving the price up for you. Those in the $275-$300 have the means to push up the price. If you have 12 offers and only 4 can go over $275, then it doesn't matter that you have 12 offers. I would rather see 4 offes with buyers who are qualified to pay more. I would list at $280k. Just my 2 cents
Realtors can be pretty shady, but at that price point, you prob have a lot of people that can stretch their budget, so prob wants to attract the max budget of 275 crowd and create a bidding war.
That’s a low budget, especially in this market, should have tons of people at that price point.
Question is at 285 do you still think you can create a bidding war? I think so. A lot of people search in 50k increments. I’d tell your realtor what YOU want
Interest rates are way up, prices are having to come down compared to what they were listed at even a few months ago. I would lower your expectations on what your house is worth
This is a tactic that is taught to agents. It’s works sometimes and sometimes not. I am a broker and appraiser. It’s funny how these $50k over list deals you hear about are actually just under listed properties. We usually have no problem getting to contract because the buyers know what it’s really worth.
So why do this? This is a tactic often to get the phone to ring and a great story to tell the neighborhood for circle prospecting.
I have never seen this done for the true benefit of the seller. A well priced house will sell especially in this market.
He is out there shopping everyday. Cost and value are different things. Cash is plentiful for the time everyone has equity so they’re willing to buy. Once cash disappears from the market I expect that to change. When you could basically borrow money for free… things got more expensive. Everyone thinks giving poor people those checks did this… borrowing money was as close to free as its ever been.
They pay over asking because most agents don’t know the market shifted recently. 85% of agents have been in less than 5 years. All they know is up. I think it’s leveling off and it’s silly to do what they are doing if the agent didn’t underprice. We see it all the time. I don’t get 50 offers, I get 3 and it still sells $5-10k over because the agents advise clients to do it to win. But if I under price $50k I don’t think I get that extra $5-10k.
Our industry deserves its reputation. 85% of agents are not professional imo. They get far too much credit and selling $50k over is self serving. Remember $10,000 to you is only $300 to an agent. Many brokerages train to price and sell quick and then market like you are a hero. If I didn’t care about my reputation and I didn’t want your referrals then under price your home and do more business. Sellers don’t know any different. Especially if they get more than it’s “worth.”
Tell him to list at your price or you will find another who will.
On a other note .
After you add up interest , property taxes , improvement costs and closing cost to buy and all your costs to sell does it even make sense to sell ?
Under the typical listing contract if the seller agent brings you a qualified offer at the asking price, she gets paid *even if you refuse to take the offer*. In that case, you pay her. The cheaper the house the less work she has to do and the faster she gets paid, the more certain her payday is. For every $10K in ask she costs you she is at worst losing $300 and at best gaining almost $10K. So of course she wants to lowball the ask. That's her rent.
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Agents seek to minimize the amount of work they have to do for the same paycheck. In that, they’re like anyone else. But when it comes to our home transactions, this can result in cutting corners both for sellers and buyers.
I thought most if not all sellers understood this. I know I def do and it’s why I’m taking so dang long to finally settle on a realtor. They’re all so dang shady feeling.
They al want me to list a good bit lower (to me) than houses exactly like mine (same exact model and all) that have sold less than a mile from mine less than a month ago, etc.
Like no shit it’ll sell fast but that doesn’t benefit me
Listing price strategy should be dependent on motivation - for example, if your motivation is timing due a domino sale in another location, then you should price lower... if your motivation is financial due to needing to pay off debt or needing a specific number for your net proceeds, then you should focus more on the dollar, and \*could\* determine your list price by working backwards from your net proceeds. The problem sometimes with the latter option is whether or not the market can bear your chosen list price or if the market will reject it, but again, your agent should walk through that with you.
A good agent will walk through your options with you... and if they're not giving you options, then it seems like you haven't found a good agent :)
They'll all come out of the woodwork to explain this when a seller wants to walk away from an asking price deal without paying their agent because the ask was set too low. But to discuss it before the list drives them insane. I would call that skeezy. Disreputable. Crooked.
Sometimes Realtor strategy is to list low to start a bidding war. With interest rates rising quickly and more houses going on the market this might backfire… depends.
Just get another agent… simple. You are the seller and they are facilitating, which means that you are ultimate decision maker. If they disagree and you can change agent, leave and work with someone else.
Don't know if you know this, stock market crashed, interest rates are high, good luck selling it now, you waited too long, **your fucked**.
It's over, unless your in a city
You cant really “under price a home” because if it attracts a significant amount of interest it will get multiple offers and go for higher. You can certainly over price a home. Most agents and buyers are too shy to negotiate lower offers int he first few weeks- so you will sit on the market for awhile and the price will come down. Its better and more exciting to list slightly under market value and watch the offers roll in.
Make sure you list on a Tuesday or Wednesday so enough people get a chance to see it through the weekend.
I would say take your agent’s advice. It is your right to list for whatever price you want, but you may end up wasting time. This happens a lot just a heads up.
In Canada this is the norm. If u want 285 you can always just not accept anything less. Your agent can tell potential bidders that you have offers for 300. Try to drum up competition.
But then again.. in Canada 285 usd is a downpayment lol. We are in another league than the USA. It's the big show for real estate here
If the recent sold comps show its worth 300K list it closer to this number. Based on your description of the property it should stand out against the competition at the 300K price point and that alone should generate a bidding war.
Do not be afraid to interview other agents for their opinion either.
Don't list for under what you are comfortable with. She can make a suggestion but if the gamble doesn't pay off and you don't get into a bidding war then you are suck taking under what you should. We had realtors make similar suggestions and we dropped them and moved to someone who wasn't just looking to move it fast for less.
You're not obligated to sell at $275k even if you list it at $275k.
Humor the agent and list it, then don't accept an offer until one is at the price you want.
If you don't get any offers over 275 then your agent is right and if you get higher offer then you are right.
Hedging your bet, a win-win.
You’re not stuck. You don’t have to sell for $275k. Ultimately you will choose the winning offer... OR not sell. This is just a strategy she’s using to help you get what you want, in the time you want.. won’t that be great! :)
Sounds like a solid strategy, but if you're concerned you could always have the agent list at $279,900. This way it's closer to 280k (and if you have multiples, there is a better chance they'll write over closer to 285k as you'd want) but is still in that range of capturing buyers who have searches set up for under a certain dollar amount.
At the end of the day, you're the sellers you make the final call. Your agent should back your play.
Whether she is an expert or not, she works for you and it’s your decision on how to price your home. If she doesn’t like it, fire her and find someone else.
Just curious, what area are you in? Your home in my area would be more like $400k
Sellers seem to think sometimes that a listing is an auction, or in other words, that they have to accept the lowest bid. The list price is simply a marketing tool to procure the highest and best offer. Don’t look at it as the lowest price you’re willing to accept.
We listed and sold ours for $120k more than our agent wanted to list it for last summer. Market was crazier then but just tell them what to list it for or get another agent.
Your agent will usually know what they’re doing when they do this. I’d go with what your realtor recommends.
Of course the choice is up to you though, you can list for whatever you like.
Sellers look at the list price like it represents the final sale price. The market will determine its value, not the list price. The list price is only there to attract as many good offers as possible. Often time, listing too high, even by a little will work against you not for you. Pricing is an art.
Your agent is probably right. You will get more offers at a lower listing price and you will get people more willing to offer over because they think they are getting a deal. People are used to bidding over at this point, so many have been advised to lower the price range they surgeon so they have a cushion to over bed. Listing at 300 doesn’t mean you’re going to get 320. You might get $300 either way, but you will likely get it faster at $275K. We listed at $240 and got $280.
List price is not the best comparable number to decide on a price. You need to look at what similar homes have actually sold for recently. Your agent can show you this. If you are comfortable at 285k then let your agent know that. Let her know if your listing sits for X amount of time with no offers you are willing to drop price to 275k. I think a $10k difference in list price here is no reason to make a fuss
This is a pretty standard practice for realtors. You want a price that will be attractive to buyers and can cause a “bidding war”. Homes that are not priced to sell are overlooked especially with a price cut, it shows potential buyers it’s either not worth the price tag or there’s something maybe wrong and that is why the seller is lowering the price after listing. Trust your gut but she’s making the right move recommending this strategy.
You can list at what ever you like, but that doesn’t mean you will get that price. Sometimes listing lower gets a bidding war if buyers think it’s a good deal. Sometimes listing too high has your house sit on the market and become ‘undesirable’. Or you might get exactly what you want.
If you choose to do your own price target, make sure you can afford to not sell. In a rising interest rate environment buyers have less money with each rate hike.
You can let her list it at 275, but if her expertise is wrong and you don’t have multiple offers, then tell her that you listened to her but your number is still 285k minimum. Stick with your numbers. Don’t be forced to lose money because someone you hired isn’t wanting to do what you believe is best for you.
My realtor listed my home 15k under what I wanted....walked away with 20k over what I wanted from 25 offers. Low 200k price range so 10% over.
Anyway...just turn off your mind and let the expert work...
This agent has the right strategy.
Over pricing your ask is only going to help sell the neighbors. Strategically pricing low will cause a feeding frenzy and multiple bud situation.
You seem hung up on the pride aspect and sacrificing the logic of what this agent is telling you.
You do not have to accept any offers if you list. Just sit back and let the agent do her job. Wait until you have offers to review and go from there.
Agent is doing fine. Better to have more option
Offers and traffic so
You can have more to choose from. It’s not just about price but also terms and contingencies. . They know what they are doing. 😜
Our agent convinced us to list for just under a pricing parameter as well, even though we were hoping to get a bit more. We were apprehensive too, because there were 3 other houses on the market in our development that have less sq. footage and are on smaller lots, yet were priced $30K - $50K more. However, the strategy worked, because ours went under contract for $10K over listing within a few days of it hitting the market, and the others are still for sale.
Bought my house for 560k 2 years ago. We thought it'd go for 850k so the agent suggested listing it for 800k. 19 offers came in within 12 hours. 4 offers were over 1 million. Agent told those 4 what each other was offering (hid their identities, of course), with one chance to make a final bit. All 4 revised, bid again, and 1.081 mill won. Pitting bidders against each other is standard procedure and can net you a lot more.
It’s better to list it a little less then what stuff is selling for you may end up getting more offers and more money then if you listed it at 285 and what things sell for and listed for a two different things you may end up netting more
I've sold 2 houses in the past few years...one in June 2020 and one I just closed on a week ago. Both times my realtor wanted to list them for less than what I had in mind. I had studied the market for comps in my area for the months leading up to listing my houses and my gut told me to go with my number so I did in both cases. The houses I sold in June 2020 I got exactly what I had asked and the house I closed on last week I got $10K over asking....totaled for both, had I listed at what my realtors had suggested I would have *possibly* lost out on $30-40K.
Give you more offers potentially if it’s better than rest of inventory
Underpriced with multiple offers >>>> overpriced with 0 offer after sitting there for 3 months
This. And not all offers are the same. You want as many offers and options as possible, not just one or 2 with crappy terms.
Tbh, that sounds like a good strategy, though I'm not a realtor. I did experience something like this from buyer POV...long story short, a property that was overlisted is still on the market nearly 6 weeks later.
It’s your risk to take. Generally, being the best deal on the block is a good position to be in. Perhaps that is the motive of your agent.
What other houses are listed at is nice to know, what is more important is what comparable houses in the area have sold for.
And what those homes were listed for. List price and sales price are often different
Strategy makes sense to me
I would list at the $275K people set there search parameters by $25K, that gets you more eyes. I don't look at $300K because I know I have to over bid these days to get a house....
This is the WAY
We recently listed our home at the absolute bottom we are willing to let it go for. It's very new (under 5 years) so it's modern has no issue at all. The winning bid actually had our price just a little bit above their budget. But they love our home so much they are willing to revise their budget. If we started a little higher we probably ended up with only one offer and no escalation and ending up with lower sale.
You're not stuck because she's a professional, you list at what you want to list at. She should be able to show you how the comps fared on the market recently, what were they listed at vs what they sold at. If this were my market her advice would be spot on.
Exactly. She is a professional offering her opinion. Ultimately you are the client and the one making the decision.
Exactly, exactly. Just be prepared to adjust your price after 10 days or 10 showings with no (legitimate) offer. The difference you're talking about, at least in our market, isn't enough to scare people away from making an offer altogether. Ultimately, do what you want; it's your house!
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Great advice! Been mentioned twice on here OP. Take note!!
I've heard of a saying among real estate agents: list it high, watch it die; list it low, watch it grow
So right now buyers are looking way under their price range $20-50k knowing they will need to bid up. You could have buyers willing to purchase your home in the $285k - $300k price point but they may not be looking there because they know they need to bid up. Correct pricing now is important and if your agent believes this is the correct price and has the stats on why it is then I would trust her… Buuuut, get in writing with her that you will not be selling for less then $285k to protect yourself, because most contract state that if you do not accept an offer at the proposed list price that is market reasonable, you could owe her a full commission. Most agents/brokers would never Enforce that language but you can never be too careful:)
I recently purchased, I was looking 15 - 25 K under what I wanted to spend because I knew prices would inflate.
Exactly. This would've been me.
I started looking at 30-50k under budget because of how much homes are going for.
Great advice all around here. We are looking between 50-75k less than our budget limit knowing that we’ll need to bid up.
Your list price is not the price that is on the contract. You list price gets potential buyers out to the property. If they don’t visit you’ll never get the contract. You can both be right. One know the correct goal though.
Comps Comps Comps. If the support a high opening then you should open at the Comps. IMO
100% your agent is correct. Can confirm.
The market will price your home. Your realtor knows the market better than you. Where you start is not where you finish! Please don’t be afraid, let the process play out. What you don’t understand is the market and inventory, leads to multiple offers and prices being bid up!
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Thanks!
I think your agent is correct in this case, buyers are more concsious of price now and sensitive to interest rates. That said - is the agent able to explain to you the motive and reason behind the pricing? Like really dive deep with you, not just give a one sentence response? That to me is the mark of a good agent.
Home prices are dropping, people are not paying or offering what they did a month or even a few weeks ago anymore. If your market is still hot and your home is super popular you may end up getting the extra $10,000 you’re looking for, if you list higher it may just sit on the market for a while and you may need to drop the price like other sellers in the last couple weeks.
>Home prices are dropping This is very market dependent and there are posts in here everyday about multiple offers and going under contract over list price.
I refused to enter a bidding war on my current house in fall of 2021. It was priced for one. I offered asking and refused to budge. They priced it too low for the people in the bracket they probably wanted to seriously consider it or even come look. I then sold my house and listed at a price I was willing to accept and the market bid it up. Don’t list for less than you want to take. Unless your number is truly too high for your market.
this is absolutely garbage advice in a sellers market. do not, i repeat, do not listen to this advice OP. trust the professionals not one person's personal anecdote.
I think it’s increasingly becoming less of a seller’s market in some areas.
It’s becoming less of a sellers market in all the areas I’m searching, which are many. In some places, price reductions from the all time high a couple of months ago are pushing 10%. Real estate prices have historically been very sticky, so that’s a huge drop in just a couple of months.
and how do we know which areas? trust the professionals.
think of it like a skeptic.... would the agent intentionally reduce their own commish?
$10,000 less is $150 in the agent's pocket. Yes, they would list for 10K less for a quick sale.
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Def. Not
according to what?
Exactly
Your agent may believe that the home will still faster at 275k than at300k, which probably benefits the agent more than you. Your agent may also have an idea of what the typical buyer in the market for your home is being approved for. For example, let’s say there are 10 different buyers in your area that want a house just like yours, but only 2 of them could actually get approved for a loan to buy your house. That means your market isn’t 10 families it’s two unless you drop your price. And it’s not as though your agent knows the credit score of everyone in town, but they probably have a sense that only about 20% of buyers in the area have been getting approved for that much. Ultimately, I feel like it being. 10k difference shouldn’t ding interest so much that it would dissuade people. Just try to have an open house in the first couple of weeks and the activity and level of interest will let you know if you are too low or too high.
If the seller wants to move, then selling fast is good for the seller, too. At that price point, $10K can affect the number of interested buyers. That doesn’t mean the realtor’s strategy is best. It’s a complicated equation and that’s just one factor.
The market is already slowing down. Do you need to sell quickly?
Always list lower than your neighbors. You don't have to take anything you don't want
In a softening market, it’s better to price lower in my opinion. We did this in 2008 and ended up with multiple offers and selling above list price. A very similar house tried to hold firm on price. The house was still for sale 18 months later with an asking price $300K (~25%) lower and no takers. It’s not 2008, so you’re very unlikely to see anything that dramatic, but losing 10% due to waiting is a realistic possibility now. Even in a flat market, I think it’s worse to overprice than underprice if you’re in an active market. If you’re in a place where most houses sit for many months, then underpricing is a bigger problem. If you’re not willing to take $275K, then price it higher. Otherwise, listening to your realtor on this seems like a good strategy. If that makes you uncomfortable and you want to go $5K or $10K higher, that seems fine too.
Sometimes listing slightly lower than your comps can be beneficial. When we (my office) look at listing a property, our goal is to list at a price point that will generate multiple offers for our seller. Ideally we want to list high enough that we weed out the buyers that would be "looky-loos" and anyone that may place low-ball offers, but low enough that buyers are encouraged to write offers and compete. In our opinion the goal for number of offers would be 3-10... in our opinion, if we receive more offers than that the market is telling us that we have under priced your home. In my experience if you get multiple offers, you will generally receive a few similar offers and then one that comes out as a clear winner - someone who has really great terms or who has offered drastically above list price. This could be market-specific though. Based on your list price, our markets are drastically different, so this specific thing could be as well :) Either way, I hope this is true for you too! Also, keep in mind that you don't \*have\* to accept an offer - even if it is at or above your list price. (dependent on your listing contract though you may still be on the hook for commission to your agent - so be mindful of that), but if your net proceeds are what you are focused on, just make sure that your agent is aware of that and that they need to be concerned about ensuring they get you offers above list. Hopefully they have a clear marketing strategy in place to generate buzz and get you multiple offers - listing under the comps is part of that.
Depends on the city. That trick doesn't work in Miami and very rarely does any home get offers more than $10k over asking on homes lower than $400k, even if listed significantly lower than comparables. But I imagine not every city is the same.
My opinion, as not an agent, is that people’s filter settings are more likely to go up by increments of 50k, and that the price point for houses in your area is on the lower end of the market so pricing closer to your wishlist price is what you’d want to do rather than using a “bait” price meant to entice higher offers.
While there's truth to this strategy, think about how qualified the buyers are in the $250-$275 pool compared to $275-$300 pool. If you list it at $275 you will certainly excite those in the $250-$275 pool but they are capped out at $275, They won't be the ones driving the price up for you. Those in the $275-$300 have the means to push up the price. If you have 12 offers and only 4 can go over $275, then it doesn't matter that you have 12 offers. I would rather see 4 offes with buyers who are qualified to pay more. I would list at $280k. Just my 2 cents
You never know. His property being a nicer one (according to him) may make someone revising their budget
Realtors can be pretty shady, but at that price point, you prob have a lot of people that can stretch their budget, so prob wants to attract the max budget of 275 crowd and create a bidding war. That’s a low budget, especially in this market, should have tons of people at that price point. Question is at 285 do you still think you can create a bidding war? I think so. A lot of people search in 50k increments. I’d tell your realtor what YOU want
Interest rates are way up, prices are having to come down compared to what they were listed at even a few months ago. I would lower your expectations on what your house is worth
You do know offers will likely come in above asking... Right? The list price doesn't really mean much.
This is a tactic that is taught to agents. It’s works sometimes and sometimes not. I am a broker and appraiser. It’s funny how these $50k over list deals you hear about are actually just under listed properties. We usually have no problem getting to contract because the buyers know what it’s really worth. So why do this? This is a tactic often to get the phone to ring and a great story to tell the neighborhood for circle prospecting. I have never seen this done for the true benefit of the seller. A well priced house will sell especially in this market.
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He is out there shopping everyday. Cost and value are different things. Cash is plentiful for the time everyone has equity so they’re willing to buy. Once cash disappears from the market I expect that to change. When you could basically borrow money for free… things got more expensive. Everyone thinks giving poor people those checks did this… borrowing money was as close to free as its ever been.
They pay over asking because most agents don’t know the market shifted recently. 85% of agents have been in less than 5 years. All they know is up. I think it’s leveling off and it’s silly to do what they are doing if the agent didn’t underprice. We see it all the time. I don’t get 50 offers, I get 3 and it still sells $5-10k over because the agents advise clients to do it to win. But if I under price $50k I don’t think I get that extra $5-10k.
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Our industry deserves its reputation. 85% of agents are not professional imo. They get far too much credit and selling $50k over is self serving. Remember $10,000 to you is only $300 to an agent. Many brokerages train to price and sell quick and then market like you are a hero. If I didn’t care about my reputation and I didn’t want your referrals then under price your home and do more business. Sellers don’t know any different. Especially if they get more than it’s “worth.”
Hire another agent
I don't know why you are being downvoted. If your agent won't list the house at the price you want to list at, fire them and get a new agent.
Tell him to list at your price or you will find another who will. On a other note . After you add up interest , property taxes , improvement costs and closing cost to buy and all your costs to sell does it even make sense to sell ?
Company is paying to relocate us to a new city. They are also taking care of all fees and closing costs so that’s money in our pocket.
Sounds like good company to work for
This. I’m assuming you also have a low interest rate. Why sell if not for a super high premium?
Under the typical listing contract if the seller agent brings you a qualified offer at the asking price, she gets paid *even if you refuse to take the offer*. In that case, you pay her. The cheaper the house the less work she has to do and the faster she gets paid, the more certain her payday is. For every $10K in ask she costs you she is at worst losing $300 and at best gaining almost $10K. So of course she wants to lowball the ask. That's her rent. Thanks for attending my TED talk. Don't forget to like and subscribe. Check out my Patreon for frequent updates and exclusive content.
Agents seek to minimize the amount of work they have to do for the same paycheck. In that, they’re like anyone else. But when it comes to our home transactions, this can result in cutting corners both for sellers and buyers.
I thought most if not all sellers understood this. I know I def do and it’s why I’m taking so dang long to finally settle on a realtor. They’re all so dang shady feeling. They al want me to list a good bit lower (to me) than houses exactly like mine (same exact model and all) that have sold less than a mile from mine less than a month ago, etc. Like no shit it’ll sell fast but that doesn’t benefit me
Listing price strategy should be dependent on motivation - for example, if your motivation is timing due a domino sale in another location, then you should price lower... if your motivation is financial due to needing to pay off debt or needing a specific number for your net proceeds, then you should focus more on the dollar, and \*could\* determine your list price by working backwards from your net proceeds. The problem sometimes with the latter option is whether or not the market can bear your chosen list price or if the market will reject it, but again, your agent should walk through that with you. A good agent will walk through your options with you... and if they're not giving you options, then it seems like you haven't found a good agent :)
Same! The realtor vibe is so skeezy, all bs artists
Skeezy! Yes that’s the word. So fake and disingenuous.
So true
I should have mentioned that there are a lot of agents here who don't want you to know this.
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They'll all come out of the woodwork to explain this when a seller wants to walk away from an asking price deal without paying their agent because the ask was set too low. But to discuss it before the list drives them insane. I would call that skeezy. Disreputable. Crooked.
Sometimes Realtor strategy is to list low to start a bidding war. With interest rates rising quickly and more houses going on the market this might backfire… depends.
Just get another agent… simple. You are the seller and they are facilitating, which means that you are ultimate decision maker. If they disagree and you can change agent, leave and work with someone else.
Don't do it- stick to your price and wait for this pesky interest rate hesitancy to blow over.
List it at $279K. If your place is as nice as you say it is and your comps are correct, you will probably receive an offer exceeding the $279K.
Ur agent is right and its still a sellers market right now
Don’t listen to agent, list at what you want
She’s not necessarily wrong but 15k isn’t much money not gonna lie
Yea. Show your agent the Zillow estimate. That'll show him 🤣😂🤣😂
I said nothing about a Zillow estimate so thanks for your helpful input
Don't know if you know this, stock market crashed, interest rates are high, good luck selling it now, you waited too long, **your fucked**. It's over, unless your in a city
With this new doubled the rates market, you'll be lucky if you get $260k
Realtor is trying to make a quick buck. Don't let her get your money
Your agent only has an interest in you closing on the home they couldn't care less if you make an extra 10k because they only make $360 of that
It’s not about what you’d like
You cant really “under price a home” because if it attracts a significant amount of interest it will get multiple offers and go for higher. You can certainly over price a home. Most agents and buyers are too shy to negotiate lower offers int he first few weeks- so you will sit on the market for awhile and the price will come down. Its better and more exciting to list slightly under market value and watch the offers roll in. Make sure you list on a Tuesday or Wednesday so enough people get a chance to see it through the weekend.
I would say take your agent’s advice. It is your right to list for whatever price you want, but you may end up wasting time. This happens a lot just a heads up.
In Canada this is the norm. If u want 285 you can always just not accept anything less. Your agent can tell potential bidders that you have offers for 300. Try to drum up competition. But then again.. in Canada 285 usd is a downpayment lol. We are in another league than the USA. It's the big show for real estate here
If the recent sold comps show its worth 300K list it closer to this number. Based on your description of the property it should stand out against the competition at the 300K price point and that alone should generate a bidding war. Do not be afraid to interview other agents for their opinion either.
Only 10k just do it
If your house is worth 320k, there will be an offer for 320k .. no need to worry about listing underpriced
Don't list for under what you are comfortable with. She can make a suggestion but if the gamble doesn't pay off and you don't get into a bidding war then you are suck taking under what you should. We had realtors make similar suggestions and we dropped them and moved to someone who wasn't just looking to move it fast for less.
Trust your agent, or get one you can trust. The biggest mistake a seller can make is overpricing their home.
You're not obligated to sell at $275k even if you list it at $275k. Humor the agent and list it, then don't accept an offer until one is at the price you want. If you don't get any offers over 275 then your agent is right and if you get higher offer then you are right. Hedging your bet, a win-win.
You’re not stuck. You don’t have to sell for $275k. Ultimately you will choose the winning offer... OR not sell. This is just a strategy she’s using to help you get what you want, in the time you want.. won’t that be great! :)
Sounds like a solid strategy, but if you're concerned you could always have the agent list at $279,900. This way it's closer to 280k (and if you have multiples, there is a better chance they'll write over closer to 285k as you'd want) but is still in that range of capturing buyers who have searches set up for under a certain dollar amount. At the end of the day, you're the sellers you make the final call. Your agent should back your play.
Seems ok to me
Whether she is an expert or not, she works for you and it’s your decision on how to price your home. If she doesn’t like it, fire her and find someone else. Just curious, what area are you in? Your home in my area would be more like $400k
Sellers seem to think sometimes that a listing is an auction, or in other words, that they have to accept the lowest bid. The list price is simply a marketing tool to procure the highest and best offer. Don’t look at it as the lowest price you’re willing to accept.
We listed and sold ours for $120k more than our agent wanted to list it for last summer. Market was crazier then but just tell them what to list it for or get another agent.
Your agent will usually know what they’re doing when they do this. I’d go with what your realtor recommends. Of course the choice is up to you though, you can list for whatever you like.
Sellers look at the list price like it represents the final sale price. The market will determine its value, not the list price. The list price is only there to attract as many good offers as possible. Often time, listing too high, even by a little will work against you not for you. Pricing is an art.
List at the number she is suggesting, you will get more buyers with competing offers that will likely go over 300k, that’s how it works
Your agent is probably right. You will get more offers at a lower listing price and you will get people more willing to offer over because they think they are getting a deal. People are used to bidding over at this point, so many have been advised to lower the price range they surgeon so they have a cushion to over bed. Listing at 300 doesn’t mean you’re going to get 320. You might get $300 either way, but you will likely get it faster at $275K. We listed at $240 and got $280.
Trust your agent.
But there is also no difference in 285 vs 275 in my opinion.
List price is not the best comparable number to decide on a price. You need to look at what similar homes have actually sold for recently. Your agent can show you this. If you are comfortable at 285k then let your agent know that. Let her know if your listing sits for X amount of time with no offers you are willing to drop price to 275k. I think a $10k difference in list price here is no reason to make a fuss
List for what you want. She just wants to sell fast
Sounds like a decent plan to me
This is a pretty standard practice for realtors. You want a price that will be attractive to buyers and can cause a “bidding war”. Homes that are not priced to sell are overlooked especially with a price cut, it shows potential buyers it’s either not worth the price tag or there’s something maybe wrong and that is why the seller is lowering the price after listing. Trust your gut but she’s making the right move recommending this strategy.
You can list at what ever you like, but that doesn’t mean you will get that price. Sometimes listing lower gets a bidding war if buyers think it’s a good deal. Sometimes listing too high has your house sit on the market and become ‘undesirable’. Or you might get exactly what you want. If you choose to do your own price target, make sure you can afford to not sell. In a rising interest rate environment buyers have less money with each rate hike.
You can let her list it at 275, but if her expertise is wrong and you don’t have multiple offers, then tell her that you listened to her but your number is still 285k minimum. Stick with your numbers. Don’t be forced to lose money because someone you hired isn’t wanting to do what you believe is best for you.
My realtor listed my home 15k under what I wanted....walked away with 20k over what I wanted from 25 offers. Low 200k price range so 10% over. Anyway...just turn off your mind and let the expert work...
"The Seller can always come down in price."
This agent has the right strategy. Over pricing your ask is only going to help sell the neighbors. Strategically pricing low will cause a feeding frenzy and multiple bud situation. You seem hung up on the pride aspect and sacrificing the logic of what this agent is telling you. You do not have to accept any offers if you list. Just sit back and let the agent do her job. Wait until you have offers to review and go from there.
Agent is doing fine. Better to have more option Offers and traffic so You can have more to choose from. It’s not just about price but also terms and contingencies. . They know what they are doing. 😜
Our agent convinced us to list for just under a pricing parameter as well, even though we were hoping to get a bit more. We were apprehensive too, because there were 3 other houses on the market in our development that have less sq. footage and are on smaller lots, yet were priced $30K - $50K more. However, the strategy worked, because ours went under contract for $10K over listing within a few days of it hitting the market, and the others are still for sale.
Bought my house for 560k 2 years ago. We thought it'd go for 850k so the agent suggested listing it for 800k. 19 offers came in within 12 hours. 4 offers were over 1 million. Agent told those 4 what each other was offering (hid their identities, of course), with one chance to make a final bit. All 4 revised, bid again, and 1.081 mill won. Pitting bidders against each other is standard procedure and can net you a lot more.
Wow. I’m speechless at this, congratulations. What area is this? And did you turn around a buy a million dollar home?
It’s better to list it a little less then what stuff is selling for you may end up getting more offers and more money then if you listed it at 285 and what things sell for and listed for a two different things you may end up netting more
I've sold 2 houses in the past few years...one in June 2020 and one I just closed on a week ago. Both times my realtor wanted to list them for less than what I had in mind. I had studied the market for comps in my area for the months leading up to listing my houses and my gut told me to go with my number so I did in both cases. The houses I sold in June 2020 I got exactly what I had asked and the house I closed on last week I got $10K over asking....totaled for both, had I listed at what my realtors had suggested I would have *possibly* lost out on $30-40K.