Home Buying in Kansas City>Question Details

Victoria, Home Owner in Cape Fair, MO

I've seen several houses sell for far more than what they were listed at. How does this happen?

Asked by Victoria, Cape Fair, MO Fri Mar 11, 2011

Is it bid up that much higher by people wanting to buy it? I need some insight into this. Thank you.

For instance, this house was listed at $12,000 and sold for $59,000 - http://=www.trulia.com/homes/Kansas/Kansas_City/sold/416187-1269-SH… target="_blank" rel="nofollow">http://www.trulia.com/homes/Kansas/Kansas_City/sold/416187-1…

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3
Hello Victoria,
It is commonplace in my area for properties that are foreclosures (owned by the bank) to be priced under market value to encourage multiple bids and sell the property quickly. Also, some short sales that are lender-approved are priced below market value for the same reasons.
Pricing below market value in general means that the seller is highly motivated and wishes for a quick sell.
Hope this helps.
Good luck!

Laura Feghali
Prudential Connecticut Realty
1 vote Thank Flag Link Fri Mar 11, 2011
If it seems like a price too good to be true then chances are it's a home being under priced to generate over activity. Many times this will create a bidding war on a home which will end up selling for closer to market value. It seems a bit deceptive to me but, must admit it does usually work from what I've seen here in AZ. It's frustrating for buyers who are searching for a home within a certain price range only to find out that they are always being outbid on properties. That's part of the reason that it's important to find a good agent who knows the market in the area and can guide their client as to whether or night they should be bidding above the listing price to even have a shot at the property they like.

Good luck,

Sandy Farmer
Realtor, GRI, CSSN
John Hall & Associates
homesales411.com
Web Reference: http://homesales411.com
1 vote Thank Flag Link Fri Mar 11, 2011
Victoria,

Many homes are listed low to stimulate activity, or at the "net" price a lender or investor is looking to get out of the property.

Bottomline is that whatever the price the property sells for, has to be within "market" value or it won't appraise. Cash is the exception to most rules though.

If you're looking to purchase a home in a particular area, it may be best to have a local realtor give you comp's for that market. That way if you're cruising the internet you'll be able to tell if it's too good to be true!
Web Reference: http://www.WeberHomes.Info
1 vote Thank Flag Link Fri Mar 11, 2011
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