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There's this new game in hot real estate markets where houses are listed intentionally well below market to attract traffic and encourage multiple offers. Here
by sxates 9y ago
There's this new game in hot real estate markets where houses are listed intentionally well below market to attract traffic and encourage multiple offers. Here in the Bay Area it's standard operating procedure, and houses are expected to sell 20-30% over asking. The 'list price' is really just an opening bid, and anyone looking for houses in these markets is adding at least 20% in their head to ballpark it's actual likely sale price. This is a big change from the past, and from many existing markets that try to list prices at the top end of where they'd appraise, and were expected to be negotiated down by a single buyer, not up by multiple buyers.
- dboreham 9y agoInteresting because this was the way houses were priced when my parents sold theirs in 1972. Plus ça change...
- phlakaton 9y agoFrom my recent experience in Bay Area homebuying, that 20-30% depends on the neighborhood, city, property, and timing. In one case we saw it was under 10%; in another it was over 35%! (It seems to be a fairly open secret in this town that the realtor involved in that latter case _really_ likes to lowball their asking price, though.) My advice (for the little it is worth, as I am not a professional in these things) is not to assume you know the buffer to apply if you're trying to make an offer. We used our own previous attempts and our studies of comparable sales in the area to inform our offers.