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Rainmaker
4,598,910
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

A listing broker/agent is hired by the seller to work on behalf of the seller to achieve the best possible "result".  Sometimes that is price but it could very well be other factors.  So many variables come into play.  Some science, some art and of course a lot of local real estate experience/market knowledge.  

Feb 21, 2020 05:57 AM
Ambassador
2,473,835
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

The first thing I'd do is jump up and down with glee.

I'd price it at the current market price, which would take into account the lack of inventory and recent sales. If it's a great house and prepared well, there may be multiple offers and the price would wind up higher but.. if the buyers are using a mortgage, it still needs to appraise. So I wouldn't suggest pricing it over market price.

Feb 21, 2020 05:14 AM
Ambassador
2,081,897
Alan May
Jameson Sotheby's International Realty - Evanston, IL
Cicadas are coming! Cicadas are coming!

I do.  I don't believe in leaving money on the table.  If there's a serious lack of inventory, I might recommend pushing the price a little... just to see what the market might tolerate.  Or minimally, price at the higher end of my suggested price range.  If we didn't ocassionally push the price... market values would never rise... amiright?

Once explaining that, I'd leave it up to my sellers.  Do you want to try to push it, or do you want to play it safe?

Feb 21, 2020 06:44 AM
Ambassador
5,290,964
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

It has to appraise and I'll let the multiple Offerees determine where the price lands. More often than not, that price is higher than I would have felt comfortable starting.

THEN, I'll coach the clients on selecting the best Offer - the one that eliminates the appraisal contingency altogether! 

Feb 21, 2020 06:31 AM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

I would never price above what a buyer could CONCEIVABLY pay. Otherwise all houses would be listed at  a million dollars.

What actually happens is directly related to the few tools the agent is proficient in using.  Too many believe the appraiser has the final word and allows the bank to dictate the value instead of removing obstacles and allowing the market to dictate value. Ironically, ethics bound agents yielded conformity in saying zDevil is beneficial to the seller. Brokers, associations, franchises have made it clear agents should have NO CHOICE in this regard.

Feb 21, 2020 06:12 AM
Rainmaker
4,933,390
Richard Weeks
Dallas, TX
REALTOR®, Broker

Depends on the seller's level of motivation.  Why are they selling, when do they need to move, etc.  Also you have to take into consideration will it appraise for this "ratchet up price"?  

Feb 21, 2020 05:44 AM
Rainmaker
469,510
Dan & Laurie Pittsenbarger Team
Keller Williams Western Realty - Bellingham, WA
Lakeside & Coastal Single Family Homes

No. If  you price it normally (at market value) - the buyers will do all the racheting. If you list high you just cut down on the numbers of folks interested in it and loose most of the bidding war potential.

Feb 21, 2020 06:21 AM
Rainmaker
917,418
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

No. It's worth what it's worth so list it at that and let buyer demand push the sale price upwards. Although, it's the sellers choice. Hope for a cash offer or someone putting 25%+ down. Also ask for highest and best offer up front if seller doesn't want to deal with multiple counter offers.

Feb 21, 2020 06:14 AM
Rainmaker
2,413,214
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

Obviously WE as Realtors do not set the price, the Seller does. I always gave my input but then again I worked mostly with developers, Builders, Contractors, and they knew what they were going to ask even before breaking ground.

Feb 21, 2020 06:02 AM
Rainmaker
2,205,312
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I launch it on Thursday, hold it Open on Sunday and as per the Seller’s request -All offers will be reviewed on Monday or Tuesday

Feb 21, 2020 05:53 AM
Rainmaker
1,851,531
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

No I don't because it's still got to appraise. We've had problems over the last few months as usual. I let the buyers bid up the price.

Feb 21, 2020 05:47 AM
Rainmaker
5,136,639
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Not necessarily... a house still has to appraise and generally the value of a house is appraised based on most recent sales in the subdivision. If it's in so much demand, let the buyers bid up the price and make sure they can cough up the difference if the appraisal doesn't come through.

Feb 21, 2020 07:03 AM
Ambassador
6,458,014
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Better to let the buyers bid it up, need to keep the price reasonable so that you create a crowd ready to drive the price up.

Feb 21, 2020 06:33 AM
Ambassador
3,157,134
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

My job is to get the most money in little time for clients. If the price is in the upper atmosphere, it may sit and that is not the goal!

Feb 21, 2020 06:57 AM
Rainmaker
2,790,645
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Appraisers, lenders & the market all serve as a check and balance against those who have the gold and then they rule. Exception: If a seller carries back equity. "A house may be for sale but is it priced to sell"...Broker Richie

Feb 21, 2020 06:38 AM
Rainmaker
693,786
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I would discuss the options with my client, including what I believe the pricing range is, based on the recently sold homes, and then let my clients set the price.  I would caution about going too high.  Our market is really going well right now, multiple offers on many homes, but there are still homes that do not sell because they are priced too high.

Feb 21, 2020 06:30 AM
Ambassador
3,356,159
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

In my market.  NO.  Price it right - market competitive and the buyers will come with multiple offers way over asking price - many with no contingencies. 

Buyers always ultimately determine the price. 

Feb 21, 2020 08:33 AM
Rainmaker
1,063,851
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Yes. Scarcity figures in. 

Feb 21, 2020 07:56 AM
Rainmaker
1,244,789
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

95% of homes under priced gets 10-15% above market or CMA price here.

Feb 21, 2020 07:22 AM
Rainmaker
5,773,781
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Great question, and I like so many of the comments, they all make great sense!  So I have nothing to add.  A

Feb 21, 2020 01:12 PM
Rainer
148,276
Susan Hale
Re/Max Realty of Defiance,Inc. - Defiance, OH
Re/Max Northwest Ohio Realtor

Seems nationwide we are hearing and experiencing "Low Inventory Market." That being said, Sellers and their Realtors know that if subject house is in pristine condition, in high demand neighborhood, smells good and easily accessible it will sell quickly in a multiple offer scenario.   I give Sellers my pricing recommendations and let the Seller have final say within reason.  In this situation I would go with the high end of the CMA valuation and possibly $5,000 higher.  As others have responded, Buyers set the values by pricing paid. If financing is involved appraised value is a factor as we all know also. If there is a shortage buyer needs to have the cash difference. 

Feb 21, 2020 10:44 AM
Ambassador
3,595,232
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Yes and we've done it many times over the years.  Agent MUST know the neighborhood trends in order to be able to pull it off successfully

Feb 21, 2020 10:26 AM
Rainmaker
904,383
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Why not? Supply and demand scenario! However, it's  best to be cautious and not too "crazy" with the price. More moderate pricing may attract more interested parties and the price will "ratchet" itself up via multiple competing bids.

 

 

Feb 21, 2020 10:07 AM
Rainmaker
7,906,713
Roy Kelley
Retired - Gaithersburg, MD

Nope. I would prefer to have multiple offers.

Feb 21, 2020 08:35 AM
Rainmaker
1,510,653
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Sometimes price a little under to get it higher in multiple offers.

Sometimes I've managed to sell them before they've finished being remodeled.

Depends on the time of year and other factors too.  Homes in desirable school zones sell better closer to summer.  Same with pool homes.

Feb 21, 2020 08:29 AM
Rainmaker
1,562,767
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

No. I let the public do it for me. Demand produces multiple offers and above asking, and quick closings. Greed produces too many days on market and possible loss of potential gains.

Feb 21, 2020 08:19 AM
Rainer
131,207
Steve Penner
Royal LePage Dynamic RE / Pro Ledger Bookkeeping Software - Winnipeg, MB
REALTOR® / Pro Ledger Online (owner)

Overall it would be my general approach to stay within a range of value that has already proven to get results. Certainly do not give it away, but resist the urge to get greedy in the idea that buyers will overpay ... as the over priced listing will likely not sell (even with a scare supply)... and even if it sells will likely not appraise out.. and then when alternatives hit the market you have lost your opportunity .... then your listing gets a reputation and becomes stale.

Feb 21, 2020 07:37 AM
Rainmaker
1,340,894
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

It is comps that dictate pricing for me. In a changing market, the price may reflect optimism or pessimism about what is happening in the market. Shortage of inventory often spurs multiple offers which results in a higher contact amount.

Feb 22, 2020 08:33 PM
Rainmaker
769,539
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

Overpriced is overpriced in any market at anytime.  Overpricing a home leads to less showings and a lower ultimate sales price.  It is also the cause of expired or canceled listings most often.  It also affect the agent's reputation to the public and fellow agents.

Feb 22, 2020 05:47 PM