Can a seller's agent re-list a home at a higher price on the date a contract has been approved and ratified? Why would this happen?

Asked by LEBoyd1, Washington, DC Fri Jul 19, 2013

Home was listed at $290,000. Contract ratified at $310,000 ($20,000 over asking). Now listing shows asking price of $300,000 and says, "Under Contract."

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9
Tracy Tramme…, Agent, Landover, MD
Sun Jul 21, 2013
Relist the home at a higher price is almost impossible. Almost!! Here is why I say that:

1. Not sure why the agent relist the property when it went under contract at a higher list price when they could of just put it under contract at the higher price and then when it closed the SOLD price could have been the $310k

2. MLS normally does not allow you to change the list price unless the days on market (DOM) is less than 72 hours old on the listing. (I believe its 72 hours maybe less)

3. The only other way that I know of, which MRIS frowns upon is listing the home again in another agents name at the higher list price but they may get a fine from MRIS for that. I've seen that happen.

4. Now If they took the property off the market for 30 days and put it back on for the higher asking price that is totally legal.

Any other questions contact me, I would love to help.
1 vote
Kelly Putz, Agent, Fairfax, VA
Thu Jul 25, 2013
Hi LEBoyd1,

I agree with Ron, that the listing agent is probably looking for backup offers. Another reason could be, if this house is a short sale, then the bank can require that the house be marketed on the MLS at a specific price based on the BPO, even if they already have a contract in-hand. If it is a short sale, then it is prudent of the agent to look for a backup offer, just in case the bank turns down your offer or you get tired of waiting for them approve the sale and back out yourself.
0 votes
Mack McCoy, Agent, Seattle, WA
Sat Jul 20, 2013
Good luck. Check out this piece in the New York Times . . . http://www.nytimes.com/2013/07/21/realestate/the-shift-the-g…
0 votes
Elisa Dewees, Agent, Cherry Hill, NJ
Sat Jul 20, 2013
Typically, If the Seller authorizes the price increase, the agent can increase the price.
0 votes
Ron Thomas, Agent, Fresno, CA
Sat Jul 20, 2013
The Listing Agent is trolling for BACK-UP offers.
0 votes
Larry Hodgson, , Washington, DC
Sat Jul 20, 2013
Some contract addenda have clauses to allow a house to continue to be listed while under contract. If this is so, the lister may choose any price they want.
It should not concern the contracted buyer, except to put them on notice that a back-up offer may be placed, which might reduce the sellers motivation to co-operate with any additional contingencies or delays to settlement.
Generally the right to list while under contract should be expressed in the documents and disclosed to the buyer at ratification if not before.
0 votes
Tyra General, Agent, Upper Marlboro, MD
Sat Jul 20, 2013
Hi,

There could be a number of reasons why this would happen. However, the best person to ask would be the listing agent. They can explain exactly why they made the change.
However, if your contract has been accepted, I wouldn't be too concerned about it. When the home is on the market, the seller is able to change the listing price in the MLS at any point.

If you're really concerned, have your buyer's agent look further into and discuss with them if they think this action may indicate any harm to you or the deal.

Wishing you the best!

Tyra
Web Reference:  http://dcmetrohomeguide.com
0 votes
Bill Eckler, Agent, Venice, FL
Sat Jul 20, 2013
Was the subject property a "short sale?" These distressed sales are often notoriously underpriced initially to attract buyer activity. Once a contract exists, the bank negotiates a final price(in many cases a higher price).

There could be a host of reasons why this has happened including price increases associated with necessary repairs or upgrades.

It's best not to worry about these things...the fact that the buyer is aware and approves, should be enough information.

Bill
0 votes
This was not a short sale or a distressed property. I am the buyer and I did not approve it. The contract listing price was $290,000. After being ratified, the listing agent relisted the property at $300,000. I think she is trying to get the property to appraise for more.
Flag Sat Jul 20, 2013
Miekeba Jones, Agent, Silver Spring, MD
Sat Jul 20, 2013
Hi LEboyd1! Have your agent contact the selling agent. Ask why? How long has it been since ratified? Has any of the contractual agreements expired?
0 votes
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