Houses that sell over asking were priced wrong to begin with

[Anonymous]

I am always happier to price the houses I sell high and reduce one time if I need to. Besides, these ridiculous stories posted here about houses going 100k over asking are absurd. Houses that are priced too high sometimes won’t appraise!

[Anonymous]

Okay!

[Anonymous]

Anonymous wrote:I am always happier to price the houses I sell high and reduce one time if I need to. Besides, these ridiculous stories posted here about houses going 100k over asking are absurd. Houses that are priced too high sometimes won’t appraise!

Pricing it high is a really stupid strategy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I am always happier to price the houses I sell high and reduce one time if I need to. Besides, these ridiculous stories posted here about houses going 100k over asking are absurd. Houses that are priced too high sometimes won’t appraise!

Pricing it high is a really stupid strategy.

This. You can price a house correctly and not way too low or way too high.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I am always happier to price the houses I sell high and reduce one time if I need to. Besides, these ridiculous stories posted here about houses going 100k over asking are absurd. Houses that are priced too high sometimes won’t appraise!

Pricing it high is a really stupid strategy.

Very stupid.

[Anonymous]

It's not always that easy to price a house. We were selling a unique house on Capitol Hill that was only 2 bedrooms but was the size of most 3-4 bedroom Hill houses on the market. We priced it on the very top end of a 2 bedroom house but it escalated about $100k during bidding, bringing it up to an above average price of a 3 bedroom. We weren't playing games, but also didn't want to overprice the house.

I think it helped a lot that the layout was fabulous (largely because of the missing bedroom) and we'd renovated tastefully so it showed really well. In the end it was a statistical outlier based on 2 bedroom comps, but did appraise.

[Anonymous]

Our agent recommended a price that ended up being more than $100k under the final sale price. We got multiple offers, obviously, but we feel we left money on the table.

It sure made the agent's job easier, though.

[Anonymous]

I feel like it's the agent's incentive to price fairly low. If it's under the market value, it gets bid over asking and then the agent can crow that they got their client a bid well over asking. And if you price too high, the interest is low, which is also not good for the agent whose comission doesn't differ much if you get 700K vs 750K on your asking price.

[Anonymous]

Anonymous wrote:I feel like it's the agent's incentive to price fairly low. If it's under the market value, it gets bid over asking and then the agent can crow that they got their client a bid well over asking. And if you price too high, the interest is low, which is also not good for the agent whose comission doesn't differ much if you get 700K vs 750K on your asking price.

Exactly. That’s why a higher price can give a seller confidence that they were able to squeeze every dollar out of a house. The agent has no incentive to do that.

[Anonymous]

The advantage of a bidding war - from the seller's perspective - is that when multiple people are bidding, contingencies are waived, and the sale can go on more smoothly. In addition, if buyers submit escalation addendums, the final price can easily be higher than it would have been otherwise. The other risk in pricing too high is that the house may sit for a while, which can discourage some buyers from making offers at all, and encourage others to submit low-ball offers.

[Anonymous]

Anonymous wrote:I am always happier to price the houses I sell high and reduce one time if I need to. Besides, these ridiculous stories posted here about houses going 100k over asking are absurd. Houses that are priced too high sometimes won’t appraise!

Why would appraisal matter, you can just pay the difference and the new price you pay will be the value of the home moving forward even used for other future homes.

[Anonymous]

You mean they were priced RIGHT. To trigger a bidding war.

You have a lot to learn, OP. Your thinking is entirely flawed.

[Anonymous]

There are different strategies to price a house in different markets for different clients. I prefer fair market price but if selling in a hot market with low inventory, I would price it low and let bidders decide what's fair. I don't recommend pricing too high as then it becomes stale sitting on market through multiple cuts and people assume there is something wrong with the house.

[Anonymous]

Anonymous wrote:The advantage of a bidding war - from the seller's perspective - is that when multiple people are bidding, contingencies are waived, and the sale can go on more smoothly. In addition, if buyers submit escalation addendums, the final price can easily be higher than it would have been otherwise. The other risk in pricing too high is that the house may sit for a while, which can discourage some buyers from making offers at all, and encourage others to submit low-ball offers.

These are definitely good points.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I am always happier to price the houses I sell high and reduce one time if I need to. Besides, these ridiculous stories posted here about houses going 100k over asking are absurd. Houses that are priced too high sometimes won’t appraise!

Why would appraisal matter, you can just pay the difference and the new price you pay will be the value of the home moving forward even used for other future homes.

Some people don't have that much extra money laying around when they are buying a house. And the bank won't lend more.