Sometimes a property I'm following will suddenly increase its cost by as much as 40 percent. Everything looks the same. Why the increase?

Asked by Claire Morris Dobie, Martinez, CA Sun Dec 16, 2012

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Connie Trinc…, Agent, Melbourne, FL
Sun Dec 16, 2012
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Hi Claire, There could be a variety of variables with this increase. As Realtors we are sometimes at the mercy of the Owners attitudes. The increase could be the Owner just wanted to go up on his property due to the profit he is looking for at closing...OR the Owner could have had a Appraisal completed on the property and decided to bring the property up to the Appraisal he might have received OR the Agent that listed the property decided other properties in the area had sold for more than what he judged this property to be worth so he talked with his Owner and made the decision, with the Owners consent to increase the price of the property. In my area we are finding that values are starting to go up. Agents try their best to get the best value for their Buyers and Sellers and sometimes that means price adjustments. Sheryl Jones, Melbourne, Florida
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Cindy Davis, Agent, San Diego, CA
Mon Dec 17, 2012
supply and demand...housing inventory in San Diego is almost nonexistent...worst I've seen in 10 years of doing this!
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The Medford…, Agent, Fremont, CA
Mon Dec 17, 2012
I’m with Laura on this one – frequently short sale listing agents list short sales WAY below market value in an attempt to get multiple offers – once it gets approved by the bank, the price is usually substantially higher. Additionally, it might be a factor of where you are tracking these properties – some sites show the amount of the existing loans, not the actual value of the homes.
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OK, thanks Carl. That seems to make sense.
Flag Mon Dec 17, 2012
Laura Coffey, Agent, Santa Clarita, CA
Sun Dec 16, 2012
More than likely you chose to follow a short sale that is below market and still needs approval from the lien holders. The increase is probably after the lien holders say what they want verses what the listing agent had it listed for.
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