Why Raise the Price of this AU Park House?

[Anonymous]

http://www.redfin.com/DC/Washington/4600-49th-St-NW-20016/home/9945882

http://franklymls.com/dynamicHtmlGen.aspx?id=DC7768971&isPrint=1

Can someone explain the strategy behind this? It was listed originally for $685K, looks like a contract fell through, and now it's relisted for $15K more? It's been on the market for 146 days.

[Anonymous]

This was under contract but the buyer's financing fell through. Perhaps the seller got enough activity at the lower price that they thought it could support the higher price? Or the seller made some improvements? I've seen both of those happen. Original list was $739K but it came on in August which is not the best time - the seller must think there are more buyers out there now so they can try for a higher price.

[Anonymous]

The most likely answers are:

1) the first offer was $700K, even though it was listed at $685K, so now they think they can get it again

2) it is a short sale and the bank countered at $700K

3) they listed it for $15K more just so they can lower it in a few days so it comes up in the MLS as decreased price and back to the top of the list.

[Anonymous]

This is not a short sale. But the other two options in PP's post have merit. It's entirely possible that $685k was too low and there was too much activity at that price point. Pricing too low is actually a PITA for the agent, because you get a ton of offers that might be untenable. It's better to price homes right so you get one, two or three GOOD offers than underprice it so much that you have to deal with a dozen offers that won't matter anyway.

[Anonymous]

Anonymous wrote:This is not a short sale. But the other two options in PP's post have merit. It's entirely possible that $685k was too low and there was too much activity at that price point. Pricing too low is actually a PITA for the agent, because you get a ton of offers that might be untenable. It's better to price homes right so you get one, two or three GOOD offers than underprice it so much that you have to deal with a dozen offers that won't matter anyway.

This doesn't strike me as plausible, given that the neighborhood is very desirable and there would be a lot of young families looking in the under $700K "starter" home range.

It does strike me, however, that the appraisals are coming in higher than expected, and that the sellers and their realtor are not doing a good job of scrutinizing the buyers' financials--hence the contracts are falling through.

[Anonymous]

Maybe they did $15K worth of improvements to their home and want to get that money back.

[Anonymous]

PP here, just looked at the listing - ugh, what they really NEED to do is make $15K worth of improvements to that kitchen. That and the low ceilings are the reason this home hasn't sold.