We missed you....where have you been?
We have many, way too many, overpriced listings in our marketplace in higher end homes. I only wish I could say that the sellers were more realistic, or that agents said "no" to overpricing.
I could be mistaken, but i think the lending guidelines are tightening more in jumbo loans than in conforming. Would be interested in mortgage rep feedback on this one!
To borrow Barbara Corcoran's line....."You can't advertise your way out of a bad market." She is my hero!
My line....."You can't advertise an overpriced listing into a contract."
Deborah- Last week I just read posts but did write. It takes a lot of time for someone as verbose as me.
All- 4 of you so far say overpriced listings are money pits, and worse. I have a companion thread on the subject started too.
nice to have you hanging around again asking intriguing questions... I think the inferences made by Josh are good ones, to I tend to agree with him. But--big but here--I'm going to check my MLS stats here, as soon as I can (probably tomorrow), and see what they say...
I hypothesize a singularly specific situation based on Sanjay's question. - Say you are aware of a buyer (represented by another agent) who wants a particular type of house, but insists on receiving a 15% discount from its list price. You meet with the seller who suggests a $999K list price. Your CMA says $849 is actual market value. - You agree to list at sellers price for initial two weeks, lowering if no offers. You contact the agent for the buyer in question. Come look at this new listing! Deal happens that would not have if house had been listed at "market value"! - Makes everybody happy!
There have been hundreds of posts as to why listings should be priced to market. - Please don't post any of those in this thread. Lets hear some justifiable, viable reasons to overprice. - I will also post a companion question for why would it make sense to price significantly below market
The stats on SP/LP were not split out by zip. I pulled comps for a certain price range to look at the relationship b/t LP and SP for that price range across all of San Ramon since April 1.
The year over year data for the 2 San Ramon zips only showed the delta in median sold price.