Agent urged us to underprice our house now we regret it

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So, you have just one offer at, say, 700k, but you think you would have been better listing at 800k?

Yeah I’m confused. If you only have 1 offer at the low price it stands to reason you would have 0 offers at the high price.

Welcome to the world of DCUM where the rules of economics do not apply.

Where the industry standard for home improvements is X amount but DCUM will gladly pay 4 times that amount and insist that is what it has to be or you are a fool.

Where you can put your house on the market and expect 50K to 100K over asking even if only one person looked at it. Where you can reject and offer and 90 days accept an offer 100K over asking (what kind of idiot buyer is that???)

Where you can buy a home, do ZERO improvements, and put it on the market 18 months later at 200k higher than what you bought it.

A world where buyers will buy an expertly staged piece of crap home with no usable kitchen, with no kitchen cabinets, and a claw foot tub with no shower - because it looks good.

A world where every buyer bought there house for a steal when the market was low and/or had amazing negotiating tactics (there is a dichotomy here that does not fit, but who cares)

Also, everyone on DCUM is infinitely wealthy with 2 million dollar homes, believes that there are no starter homes, you must drive luxury cars and those that don't are riff raff, etc.

I read these threads and am shocked by the lack of common sense and wonder are these people that run our government and legislate? Because it very much sounds like are government's budget. But these people can continue on their merry way while the rest of us, build retirements, pay off all our debt and retire young-ish because we were not so foolish about money.

I’m previous poster who sold at a later date for 100k over our first offer.
That offer was 100k UNDER list and there were no competing offers.
2 months later we sold with multiple bids above list.
TIMING MATTERS.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Who in God's green Earth is spending Forty Thousand dollars on 1 day of site prep, 3 days of framing, a half day of electrical, no days on plumbing and maybe $3000 tops for material?!

If you're telling me I can move back to the DC area and make $30,000 every six days just by building porches, count me in.

Yeah man! Do it! You’d be a fool not to!

If you can, do it. Yes, people are stupid here.

PP is ignoring permitting and such which is very expensive here. And he’s likely not insured — since working on $1M home sites carries more liability. He’s not in DC so yeah labor, etc cheaper.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So, you have just one offer at, say, 700k, but you think you would have been better listing at 800k?

Yeah I’m confused. If you only have 1 offer at the low price it stands to reason you would have 0 offers at the high price.

Welcome to the world of DCUM where the rules of economics do not apply.

Where the industry standard for home improvements is X amount but DCUM will gladly pay 4 times that amount and insist that is what it has to be or you are a fool.

Where you can put your house on the market and expect 50K to 100K over asking even if only one person looked at it. Where you can reject and offer and 90 days accept an offer 100K over asking (what kind of idiot buyer is that???)

Where you can buy a home, do ZERO improvements, and put it on the market 18 months later at 200k higher than what you bought it.

A world where buyers will buy an expertly staged piece of crap home with no usable kitchen, with no kitchen cabinets, and a claw foot tub with no shower - because it looks good.

A world where every buyer bought there house for a steal when the market was low and/or had amazing negotiating tactics (there is a dichotomy here that does not fit, but who cares)

Also, everyone on DCUM is infinitely wealthy with 2 million dollar homes, believes that there are no starter homes, you must drive luxury cars and those that don't are riff raff, etc.

I read these threads and am shocked by the lack of common sense and wonder are these people that run our government and legislate? Because it very much sounds like are government's budget. But these people can continue on their merry way while the rest of us, build retirements, pay off all our debt and retire young-ish because we were not so foolish about money.

I’m previous poster who sold at a later date for 100k over our first offer.
That offer was 100k UNDER list and there were no competing offers.
2 months later we sold with multiple bids above list.
TIMING MATTERS.

1) so you sold a few thou over list, okay. That’s hardly $50k over list two months later.

2) timing does matter. When exactly did you list and sell? January then March?

[Anonymous]

Bought a house like this. Sellers agent made promises and they agreed to price lower than what they would accept. The sellers threw an absolute hissy at our full price offer. We ended up coming up a few thousand and their agent covered the rest out of their commission. Idiots.

Price your house appropriately.

[Anonymous]

I think your RE screwed you. And you have no way of knowing whether it was in fact a pocket listing. One offer in August doesn’t speak to the market. Except the low August market.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Who in God's green Earth is spending Forty Thousand dollars on 1 day of site prep, 3 days of framing, a half day of electrical, no days on plumbing and maybe $3000 tops for material?!

If you're telling me I can move back to the DC area and make $30,000 every six days just by building porches, count me in.

Yeah man! Do it! You’d be a fool not to!

If you can, do it. Yes, people are stupid here.

PP is ignoring permitting and such which is very expensive here. And he’s likely not insured — since working on $1M home sites carries more liability. He’s not in DC so yeah labor, etc cheaper.

Why are you purposefully spreading lies? A 250k addition in the city of Alexandria has permit fees in the $2000-$3000 range. You can google Alexandria Permit Tracker and look up by address any property undergoing renovations.

[Anonymous]

Anonymous wrote:Said there would be a bidding war, one open house later we have an offer at asking but no war to speak of. The lowest we’d accept is 50K more than list but she was trying to cast a wide net by pricing so low. We’ve now realized it going with her price was a mistake. House getting a lot of traffic for August but clearly not enough for escalations. Is it too late to raise the price before the next open house?

Where are you listing and where is your house located? Location is everything (and condition/update to house matter). I sold in the spring frenzy in DC and got $55 over asking with multiple bids.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Said there would be a bidding war, one open house later we have an offer at asking but no war to speak of. The lowest we’d accept is 50K more than list but she was trying to cast a wide net by pricing so low. We’ve now realized it going with her price was a mistake. House getting a lot of traffic for August but clearly not enough for escalations. Is it too late to raise the price before the next open house?

Where are you listing and where is your house located? Location is everything (and condition/update to house matter). I sold in the spring frenzy in DC and got $55 over asking with multiple bids.

Last poster here - it was $55,000 over asking. We priced about $25,000 lower than our minimum and did just fine. Again, timing matters (spring) and location.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Who in God's green Earth is spending Forty Thousand dollars on 1 day of site prep, 3 days of framing, a half day of electrical, no days on plumbing and maybe $3000 tops for material?!

If you're telling me I can move back to the DC area and make $30,000 every six days just by building porches, count me in.

Yeah man! Do it! You’d be a fool not to!

If you can, do it. Yes, people are stupid here.

PP is ignoring permitting and such which is very expensive here. And he’s likely not insured — since working on $1M home sites carries more liability. He’s not in DC so yeah labor, etc cheaper.

Why are you purposefully spreading lies? A 250k addition in the city of Alexandria has permit fees in the $2000-$3000 range. You can google Alexandria Permit Tracker and look up by address any property undergoing renovations.

Nobody wants to admit they’re foolish and pay 2-3 times something vs the true worth.

[Anonymous]

Op.
WHAT DOES YOUR REALTOR SAY?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Who in God's green Earth is spending Forty Thousand dollars on 1 day of site prep, 3 days of framing, a half day of electrical, no days on plumbing and maybe $3000 tops for material?!

If you're telling me I can move back to the DC area and make $30,000 every six days just by building porches, count me in.

Yeah man! Do it! You’d be a fool not to!

If you can, do it. Yes, people are stupid here.

PP is ignoring permitting and such which is very expensive here. And he’s likely not insured — since working on $1M home sites carries more liability. He’s not in DC so yeah labor, etc cheaper.

Why are you purposefully spreading lies? A 250k addition in the city of Alexandria has permit fees in the $2000-$3000 range. You can google Alexandria Permit Tracker and look up by address any property undergoing renovations.

And 3k tops for materials??!? We did a DIY deck and the Trex cost alone was 8k. That didn't include the posts or railings.

[Anonymous]

Anonymous wrote:I think your RE screwed you. And you have no way of knowing whether it was in fact a pocket listing. One offer in August doesn’t speak to the market. Except the low August market.

I think so too. The days of rabid bidding wars are over. And even in the hottest markets, bidding wars are much more restrained than in the past. OP's realtor knows this and screwed OP into getting an easy sale (commission) for the RE.

OP, our realtor did the same thing to us last September. Convinced us to price it lower than the other two agents we interviewed told us to price it, and lower than she told us it was worth. Assured us this would attract multiple buyers and they would bid up higher than if we priced it higher to start with. We ended up with two competing full-priced offers a few weeks after listing and neither would budge in this market. If we had priced it $35-50K higher, then I - like OP - think they would have just offered that. We accepted one of the offers and moved forward, but that experience left a bad taste in my mouth.

It's more of a buyer's market than a couple years ago and buyers just aren't willing to go over list price except for the hottest properties in the hottest markets. It matters more that they won't go over list than the actual list price, within a reasonable margin. It's also more common for properties to sit for a while. The previous period of homes flying off the market to go under contract within a couple days of listing was unusual. That couldn't last forever.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Who in God's green Earth is spending Forty Thousand dollars on 1 day of site prep, 3 days of framing, a half day of electrical, no days on plumbing and maybe $3000 tops for material?!

If you're telling me I can move back to the DC area and make $30,000 every six days just by building porches, count me in.

Yeah man! Do it! You’d be a fool not to!

If you can, do it. Yes, people are stupid here.

PP is ignoring permitting and such which is very expensive here. And he’s likely not insured — since working on $1M home sites carries more liability. He’s not in DC so yeah labor, etc cheaper.

Why are you purposefully spreading lies? A 250k addition in the city of Alexandria has permit fees in the $2000-$3000 range. You can google Alexandria Permit Tracker and look up by address any property undergoing renovations.

And 3k tops for materials??!? We did a DIY deck and the Trex cost alone was 8k. That didn't include the posts or railings.

Than you either built a soccer field sized deck or youre an idiot. Trex's pricing calculator for a massive 800 sqf deck with substructure and railings comes in at 5k and that's without any negotiating involved.

https://www.trex.com/products/deck-cost-landing/productcalculator/

[Anonymous]

OP, have you looked at your listing agreement? It's possible that if you followed some of the advice here about not accepting the offer that the broker may still be able to collect her commission.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If your house is such a good deal 50k under what it’s worth I feel like you would’ve gotten more than 1 offer. Maybe not a bidding war but at least 2 offers to consider.

Our friends priced their house $50k under to start a bidding war. They had two dozen families walk through before the open house and received 7 offers. They ended up nearly where they had hoped they would land.

If you only got one offer, then your house is likely priced appropriately. Sorry.

+100. Ding ding ding