Hat tip to Susie for sending in this great article from SFGate:
Houses deluged with offers way above their asking price are common stories nowadays. But there remain a significant minority of wallflowers. They could be challenged in some way — awkward layout, unpermitted work, problematic location — or there could be an issue with the pricing.
Here’s a tale of two recent for-sale houses, located side by side in Oakland’s popular Rockridge neighborhood — an easy stroll to BART, coffee, lots of chi-chi shops – that underscore how real estate remains as much an art as a science.
One triggered a bidding war and sold last month for $146,000 over asking, a 20% premium. Right next door, the other house sat..and sat…and sat, and this month was withdrawn from the market, having failed to win a satisfactory bid.
“When a property is priced below the comparables, such as (the house that sold), it attracts multiple offers and often times sells for well above what the market supports,” he said. “This of course is what drives a rising market. When a property is priced at the top end of the range of value, or above, it does not garner as much interest and ends up sitting. The longer it sits the more stagnant it gets and will end up selling for less than what the comps indicate as market value or being pulled from the market.”
Read the full article here:
Any hack can list a property below the comps in order to generate a bidding war.
The good agents recognize that what’s in demand is more than just simply location or zip code and can price accordingly.
I would also add, that getting the bids is only half the battle. If a bad listing agent can’t handle the multiple bids, then the buyers and seller get hosed.
I have lost out as a buyer a few times because the listing agent pooped the bed after the offers came in. My representation was stellar as always, but you can’t do anything about a listing agent that unplugs their phone because they can’t handle the stress.
So…true…Jim Im curious your listing on Deer trail felt like it was price kind of high. It appears to be active. Is the market changing direction? Though rates have gone down .3875% it just feels the frenzy is gone, and we are headed down now that inventory has shown up.
We have offers in, but yes frenzy is over and buyers expect to deal.