BPO or no BPO, the increased price is a pipe dream in someone's mind. It doesn't move at $200K, so let's bump it up to $250K, not a smart move at all.
Prices are still sliding. I've said it before and I'll say it again.
Scott Miller, Realty Associates, Boca Raton, FL
The only time raising the price might work is if home prices are rising quickly and inventory is dropping.
Jones and Co Realty
Today's buyer is so well educated and informed - largely because of the wealth of info online. This adds to the issue for overpriced properties - the sellers that understand this and price correctly out of the gate will sell more quickly and for more than those that don't.
Raising the price - rather than lowering it if the home doesn't sell - makes no sense at all.
The exceptions that the prior posters have mentioned - distressed sales, mispricing that has confused the buyer into thinking that the property is flawed are interesting exceptions. But even then I think raising the price is risky and may just as easily result in fewer visits/interested parties.
The other possibility is new construction - it is not uncommon for the price to increase as the home takes shape and nears completion.
Unwavering Commitment to Service
Debbie Albert, PA
If you like my answer, please select best answer!
Also if it's a short sale flip where there is potential fraud, the insider investor may have finally gotten approval for the lowball price and now wants to FLIP it at full market value to ideally an ALL CASH buyer. Most lenders don't want to see a previous owner who has owned a property no more than a week so this is why they target ALL CASH buyers.
There are really few reasons anyone would increase the price of their home that already has not sold.
First, if the home is a short sale. They may have been working on a potential deal for the house. the bank could have countered them and told them that this is the lowest amount of money they will accept. Thus, the agent is justified in raising his price on the home.
Second, they were told (or noticed) that comparable homes were selling for more money than theirs in this market. Even if that is the case, it is still a variable and not every house is going to show the same.
Third, is they found out they owe more on the house than they anticipated. if that is the case then they may not have the money to come up with to close on the house if they take less. so, they may be in no ther position that to raise the price of the home.
Last, is they may not want to sell...Or one of them may be having second thoughts and convinced the other to raise the price knowing that it probably will decrease the chances of them getting an offer on the home.
But in any case...the Realtor shoudl have in the comments section a reason why for the price adjustment. If the reason is one that makes sense and buyers can quantify.
Then there are those pricing increases that are made by people that "just don't get it!" This type of activity, as one would expect, does nothing to increast the home's marketability.....it only serves to prolong the experience.
This technique has been studied quite a bit as it pertains to emotional consumers shopping for products, in a retail shop for instance. The higher price creates a sense of value or worth/exclusivity....thats why we pay $200 for 'designer' jeans when cheaper one sell basically the same thing for $25 or Fiji water for $3 when Aquafina is $1.50.
There could actually be many reasons your home is not attracting people literally due to a low price.....if homes are priced much higher than yours it could appear to buyers its defective or something, or if its too low for an area it might not be showing up in searches properly.. if they are limited their search to higher priced homes, thinking thats the proper range for the area, this could be very true if your in a somewhat rural area and homes/comps are widely different.
I would say in general a higher price is likely not the real answer but its worth a real 'holistic' look at all the possible reasons.
1. Well - you could be right - and they are not in their "right mind"
2. Or............they really don't want to sell, and someone - usually a neighbor - told them they didn't ask enough
(forget option #2 - I'd go with option #1)!
One other possiblity - perhaps they DID receive an offer close to full asking, and that made them think they hadn't priced it high enough, but that wold only apply if the home isn't on the market that long......who knows! Go back to option #1!
It's odd yes but due to the carefullness of buyers, Sellers are being just as careful.. It's a shame because there are so really good homes being passed by. Most Buyers are going for the short sales and foreclosures and so many of them are turning in nighmares...
All the Best
Dave & Lisa
But you're right - assuming it wasn't selling, and the seller raised the price, it would seem a little crazy. I'm thinking theres more to the story than meets the eye.