Home Buying in Marlborough>Question Details

Joe, Home Buyer in Mboro

Why would seller jack up the price in this market?

Asked by Joe, Mboro Sun Dec 21, 2008

A 4 BR house in marlboro has been on market for 6 months, but recently i see the house listed for $30k higher than before. What are the possible reasons a seller would jack up the price when RE market, economy/employment is going south?

Help the community by answering this question:

Answers

7
Jim Mellen,REALTOR’s answer
Joe,

Just guessing but I've seen it before also, but have never suggested a seller do it or been asked to by a seller. But here are two possibilities 1. The seller made a number of improvements to the house, based on showing or agent feedback. Maybe they renovated or upgraded something and think it's worth more. Sometimes we'll ask a seller to make improvements but that generally gets us just to the asking price, not cause for an increase. 2. Perhaps the seller felt they were attracting the wrong buyer or not enough buyers so they figured they would raise the price to a different search criteria and would attract the value shopper at the bottom of the next price range as opposed to the top of the price range where they were.

Doesn't seem to make sense either way, but occasionally sellers get advice from coworkers,friends or family or the agent trying to make something happen. There's really nothing wrong with it but buyers and agents are too smart and have too much information to make it work! However sometimes it's the unorthodox things we try that gets the most action. They got you to notice and talk about it didn't they!
Web Reference: http://www.JimMellen.com
1 vote Thank Flag Link Tue Dec 23, 2008
BEST ANSWER
HI Joe:

I would not second guess why a seller would want to raise the price on a house - there are so many.... such as....

it could very well be that they don't really want to sell, they get information from a different source than you, there were multiple offers (it's true, we get those even now), the high offer fell thru and the seller thinks they can sell for that price now, they anticipate bargain down from offering price so they raised the price....

So, go to the source - have your Realtor give you an analysis of the market and call the listing agent to ask. You will be surprised....

However, don't that a raised price deter you. If you like the house, do what you need to get the house and pay what you feel the house is worth, nothing more, nothing less.

Best,
Sylvia Barr
Marin Realtor
1 vote Thank Flag Link Sun Dec 21, 2008
Sylvia Barry,…, Real Estate Pro in Novato, CA
MVP'08
Contact
Joe, For my 2 cents worth, I would agree with Dp2 & Sylvia. Just up the street from me is a house that shows as being on Zillow as a FSBO for 350+ days, the agent I use had it listed for 6 months before that.
About 2 weeks ago I noticed the owner raised the price $10,000.
I had gone throught the home with my agent in Sept. and talked to the owner on the phone 1 time (owner had moved to East Coast). I got a phone call from the owner last week offering to sell me the property for $30,000 less than the original price. Confusing I know, but so are the times...

. You sound informed and should just determine what you think the value is and offer that price. If you look at the trends in many areas, you will see sales falling, average sales price falling, foreclosures rising and for some mysterious reason Listing prices going up.

So as Dp2 and Sylvia suggested, be informed, gather your information, make your offer, see what happens...
If the store on one side of street drops prices and the store on the other side raises them do you really care why? I just go to the one with lower prices..

In a kingdom of the blind , the person with sight in one-eye can be King...

Good Luck, Dunes
1 vote Thank Flag Link Sun Dec 21, 2008
A mentor once told me, "The list price is the least important piece of information about a listing."

I echo Sylvia's message: don't second-guess the seller--just make your offer.
1 vote Thank Flag Link Sun Dec 21, 2008
Joe,

It's clear that this responsibility is shared by the home seller and their agent. Sellers understand they are not going to get a "full price" offer in this market so they take the position of pricing it slightly above where the really want to be. Unfortunately, to few agents are not willing to take what sometimes needs to be a hard stand on the issue. Rather than take the chance of losing the listing they are willing to play the sellers game.

In the sinerio outlined by you, we have no means by which to understand if the seller made a significant investment to improve the sale ability of the home that would warrant this type of increase. We would hope this is the case and it just wasn't a prce jump.........
1 vote Thank Flag Link Sun Dec 21, 2008
Thank you everyone for your time and sharing your knowledge/expertise.
This site and reading articles elsewhere has added to my knowledge greatly. I hope to use it to make a killing this year :)
Again Thanks.
0 votes Thank Flag Link Sat Apr 11, 2009
Without information on the specific house its hard to know for sure but it is possible that the listing is a short sale. Even with a very low price tag, many short sales stay on the market because buyers and agents don't want to deal with the time and effort it takes to see the deal through. It is possible that an offer came in on the property and it took months for the lender to respond and when they did, they could have said that the offer price was too low and if the seller wants to sell, the price must go up to the minimum that they would accept...30k higher. This is usually the scenario I see today whenever a price is raised like that. But rather than the gueswork- just ask the listing agent for the answer.
Web Reference: http://www.RobinGilman.com
0 votes Thank Flag Link Tue Dec 23, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer