Why would a seller increase the sales price of a home if the home has not sold within 60 days?

Asked by mhclark, Oviedo, FL Sat Feb 9, 2013

This seems counterintuitive. I can understand raising the price if the house is a short sale or if it was originally priced under the market value. However, if a house was priced 11% above the assessed value and it wasn't selling at that price, why would it sell at a higher price?

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13
Antonio Vega…, Agent, Saint Cloud, FL
Sat Feb 9, 2013
A. The seller is playing a bluff of asking more to then accept a lower offer and gain the original amount. Sounds good but will not work if above market value.
B. The seller has seen lots of movement with other homes on the neighborhood and believes the market / price can go up for him also, another misconception.

Eventually he/she will get tired of trying to run the show and will begin to listen to their agent...however some sellers never learn.
1 vote
this post is a tad condescending. some agents "never learn" as well...no need to be snarky and it's unprofessional.
Flag Thu Feb 21, 2013
Jean Scott, Agent, Oviedo, FL
Sat Feb 9, 2013
Good points, Ron. Once a home is on the market for a couple weeks, we tell clients our opinion as Realtors and theirs as home owners is immaterial. The market does the talking. Not us. Well priced homes in good condition get plenty of traffic and offers fairly quickly. If you are hearing crickets, the market is telling you loadly and clearly, "Your home is over priced".

Why make it more overpriced? We can only speculate. Unless condition is was significantly improved and the Realtor properly markets it as such, the home will continue to sit.

Tom Scott, Realtor
Jean Scott Team.
1 vote
Eoj Mihkiel, Home Buyer, Pittsburgh, PA
Mon Mar 11, 2013
Maybe the seller made some costly repairs or improvements to the home and has increased the price to recover them.
0 votes
Tania Harmon, Agent, Orlando, FL
Mon Feb 11, 2013
First of all the assessed value is for property taxes and not property value.

Secondly, if the home was a short sale the 3rd party lender may have replied that they would not accept the listing price but would accept a higher price and then the price was relisted with that knowledge.

Thirdly, If it was first listed as a FSBO, the seller did not have the marketing available to him to drive activity needed to sell at any price. He would have a better chance of selling at a higher price by listing with a Realtor.

Not knowing all the facts or what the actual comparable were there are many variables to the anwser to your question. Only one thing holds true. Hire an experienced Realtor to help you with pricing and purchasing a home.
0 votes
Annette Law…, Agent, Palm Harbor, FL
Sun Feb 10, 2013
There are lots of reasons one could raise the price.
None of those reasons can be shared since you provided no link to the subject property.
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Since you improperly associated the 'assessed value' to the list price, I do not believe you will be receptive to any explanation regarding justification for raising the list price based on tangible or intangible assets.
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Do a little digging in the Trulia archives regarding the sale of the home belonging to the owner of FSBO.
He hired a Realtor who raised the price and sold the home after he did all the FSBO stuff for over a year.
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Again, there are many reasons. But for you, the first reality you must accept is what you see on aggregate websites is for entertainment purposes. If you are serous about a home purchase you need access to real data. Your local Realtor can give you access to the area MLS. There is where the real data resides. BUT, even the MLS is of no help if one is attempting to compare apples to oranges.

Sincerely,
Annette Lawrence, Broker/Associate
Reamx Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
Movie Tour
http://youtu.be/g1H-_ny-Mnk
0 votes
Jeff and Kaye…, Agent, Colorado Springs, CO
Sat Feb 9, 2013
Hard to say... It could be that the seller thinks the reason it did not sell at that price was that it was marketed over the holidays which can be a slower time in the market. Another reason may be that they made some improvements to the property which would increase the value. I would not be shy about having your agent ask the listing agent about it. It's not the norm so they should have some reason.
0 votes
Bill Eckler, Agent, Venice, FL
Sat Feb 9, 2013
The world is filled with unexplained events.....this is obviously one of them. One could only hope there were a fair and reasonable explanation. Likely the best source for this information would be the seller.
0 votes
Nina Harris, Agent, Williston Park, NY
Sat Feb 9, 2013
The assessed value has nothing to do with market value and tends to be inaccurate most of the time. The seller could be thinking that their home was priced too low and has the listing agent increase the price. Although we provide comparatives and give guidance as best we can to the seller, at the end of the day the seller will set the listing price.
0 votes
Ron Thomas, Agent, Fresno, CA
Sat Feb 9, 2013
You are assuming that the Seller had a good reason for the initial price:
Most member Realtors would agree with me that often, much too often, Clients do not LISTEN to us.
We can give then sound, Marketing reasons for the advice we give.
We will do a CMA to determine the Market Value of their property, and they choose to reject it: They have their own idea of what their property is WORTH.

We are frustrated and even angry when this happens, and we argue with ourselves over whether we should "fire" the client. Too often; we don't!

This sounds like a Seller who has their own ideas about how to market their house.
What can we do?
0 votes
Jean Scott, Agent, Oviedo, FL
Sat Feb 9, 2013
There isn't a good reason to do so if they want to sell the home. There could be many personal reasons.

The only other thing I could think of is the homeowner made significant improvements to the property. However, the best way to do that is take the home off the market for a period of time while the improvements were being made, then relisted with new photos of the front of the home and any improvements with detailed descriptions

Thomas Scott, Realtor®
Operations & Marketing Manager
The Jean Scott Team
407-760-3639

Keller Williams Advantage Realty
1351 Alafaya Trl Ste 100
Oviedo, FL 32765
0 votes
Scott Godzyk, Agent, Manchester, NH
Sat Feb 9, 2013
Assessed values to do not count or matter when placing a value on a property. If a home is not selling the top 2 reasons are teh price is too high or a lack of attention from the listing agent. Perhaps teh seller made an improveemnt or repair and added to the price to cover the cost.
0 votes
Anne-Marie W…, Agent, Oviedo, FL
Sat Feb 9, 2013
Rare for a seller to increase their price if no offer has been received at the current price, but prices are going up and inventory is low. Maybe they're ok with the market catching up to their new price.
0 votes
Shanna Rogers, Agent, Murrieta, CA
Sat Feb 9, 2013
Hi mhclark,

If it's not a short sale, I'm not sure without more information. However, the assessed value means absolutely nothing when selling a house. Assessed value usually is not the same as current market value.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes
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