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Asked by John Howell, Cupertino, CA Thu Sep 9, 2010

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Answers

186
Andrea Wince…, Agent, Milpitas, CA
Thu Sep 9, 2010
BEST ANSWER
Hello John, My answer to your question is YES but with an explanation.....agents may list lower than neighborhood comps in order to generate quick interest and multiple offers by agreement of the seller. A home can get a lot of exposure that way because buyers will flock there thinking they are going to get a steal. It's also a great way for agents and sellers to "brag" they got multiple offers on their home. Success or failure of a pricing strategy is dependent upon what other homes have sold for (last 3 months) NOT LISTED pricing but SOLD-CLOSED ESCROW pricing. In my experience with multiple offers and bidding wars, the price usually ends up where it should have been in the first place. Whether you price low or high, in today's market we have a lot of saavy buyers who've done their homework on home values and a lot of saavy agents who educate buyers. Homes usually won't sell for much more than market value today as appraisals are very strict due to tougher lending standards. If your house is worth $850k and a buyer offers you $950k, it's not going to pass an appraisal, a requirement that is performed by the buyers lender. Under that scenario, the buyer could walk away unless he has gobs of $$ and still wants to pay more after receiving a copy of the appraisal. The latter is unlikely.
1 vote
Monir Mamoun, Agent, Denville, NJ
Sat Sep 25, 2010
Hi John, you are asking a very tricky question. The reality is actually that a lower listing price encourages multiple offers -- so while one way of "looking at it" could be interpreted as saying it was underpriced, in reality it may have been smart marketing. The reality is a home will sell for whatever people are willing to pay -- an overpriced home will get few or no showings. A "correctly" priced home will get an average number. But a home listed for less than market value attracts a lot of interest in the crucial first few days, and this creates perfect conditions for multiple offers and bidding situations. It is ironic, but a low listing price often gets the highest possible sales price -- a lot of sellers do not realize this and make the "natural" and totally wrong choice to overprice at first, thinking they'll reduce later if it doesn't sell. Unfortunately this tactic results in a lower price because they blow the hot window of the first month, and are reduced to selling "damaged goods" with a price reduction.

Or -- it could just be an awesome place that everyone wants!!!
4 votes
The Olf Team, Agent, Bonaire, GA
Tue Sep 21, 2010
Not necessarily. Sometimes when a home is in a very desirable neighborhood buyers have their agents pulling new listings everday so they dont miss a home where they want to be located. The media has made it seem that all areas housing markets have gone way down and houses are worth half as much but there are still many areas where prices are holding on and houses are still selling fast. I sold quite a few homes this year in a short amount of time. One went pending in a matter of hours and it sold for appraised value. Tough question since i dont know all the details but never just assume.
3 votes
Robert Crowe…, , Point Roberts, WA
Sat Oct 9, 2010
The market always establishes value. The question I have is: Was the property fully exposed to the market? I've been working in market where multiple offers over asking are usual. This is great for Seller if the offers are managed well, and our board has offered seminars that include the topic of managing multiple offers.

I've had as many as 22 offer on one property, and from experience there are usually a group of offers at around list price, another few well over, and often one or two that set new benchmarks for price in a hot market.

Face it: Buyers set the price, and in a market with short supply, and high demand, it's often a good strategy to list on the low side, hold off showings until all the photos, virtual tour, and other marketing for the first open are set. I've often held a REALTOR® preview on Friday, and held opens Saturday and Sunday to fully expose the property to the market before accepting offers. Our board allows this if the Seller requests this in writing, and it's worked well for many top agents in my market area.

In my opinion listing on the low side is only a risk in a slow moving market where it's uncertain that there will be more than one ready, willing and able buyer.

Some great strategies for winning in a multiple offer situation when representing a buyer include, having a pre-inspection prior to the offer, having few, or no conditions and a very large certified fund deposit in hand when presenting the offer. I always encourage my Buyers to offer their very top price right from the start, as often times in multiple offer situations there is no second chance to negotiate.
2 votes
Sandy Gifford, , Cabot, AR
Thu Sep 30, 2010
Agents in todays market are very dilligent in pulling comps for any given area. they are very careful not to overprice with the inventory that is available. It sounds like there was a lot of competition for the home and the buyers wanted it bad. The agent did a great job!!!
2 votes
Brian McGree…, Agent, Sarasota, FL
Wed Sep 29, 2010
Real estate is a funny (or maybe not so funny) business. When a property sells quickly, near, at or above, list price, sellers often believe the agent did something wrong. Yet, if the property does not sell or sells slowly, at a price lower than the list price, the seller often believes the agent is also at fault.

List price is one of many factors that affect the sale or non-sale of a property. When you list a property for sale it is important that you thoroughly review recent sales, expired listings and current properties for sale in your area. The agent should be able to discuss and compare your property to these and suggest a list price. By going through this process with the agent you will have a better understanding of the market and how your property compares. Based on your motivation you should then consider the list price suggested and help the agent understand your specific golas for the sale. Hopefully, you did this when you listed your property.

Based on the information in your question alone, there is no way for me to know if your property was mispriced. However, if you followed the process I listed above, you would know.

Brian McGreevy, Broker/Owner
Sarasota Home Realty
2 votes
Kevin and Ju…, Agent, Wildomar, CA
Mon Sep 20, 2010
Yes - but it may have been purposeful. Sometimes agents list low to generate interest and ultimately the seller receives FMV
2 votes
John Sefton, Agent, Long Beach, CA
Sat Oct 23, 2010
It is incredible to see so many responses patting the Agent on the back for doing a great job. It does not take any special effort or talent to sell an undepriced listing quickly.

There is no question that the listing was underpriced. The only question is whether or not it was underpriced intentionally for a quick sale. The fact that the Seller is questioning it indicates that it was not intentional on the part of the Seller.

The possibility that underpricing was used as a strategy to start a bidding war is negated by the fact that an offer was accepted quickly rather than letting the bidding war develop.
1 vote
Joyce Vuiller, Agent, Mechanicsville, VA
Wed Oct 20, 2010
You must have had a great product! A Good looking home, priced right will sell in any market! Sounds to me your Real Estate Agent did the homework to get the job done! Congrats!
1 vote
Jennie Spall…, Agent, Vernon Hills, IL
Wed Oct 20, 2010
Congrats to you and your Realtor! You both were realistic as to current market value, which is why your property sold so quickly. Having the good fortune to experience multiple offers in this market actually raised the selling price of your home, where as the majority of sellers who "test the waters" for several months often need to lower their prices and wait for ages to even get one offer! You done good, kid!! Now you can get on with your life....
1 vote
Jo Kleinsorge, Agent, Carl Junction, MO
Wed Oct 20, 2010
I have had a client call on two homes hers in Joplin, Mo this week that are already under contract.
Good homes that are priced right are still selling and will sell quickly.
It is common the have second thoughts when your home sells quickly because every seller understandably wants top dollar.
If your agent showed you similar homes that sold when determining your list price, it sounds like you and the agent did a great job. You for getting the condition right and your agent by help you determine a marketable price.
There is no room in this market to test the water with price. Every week that your home is on the market is money lost. Chances are if you were priced to stimulate multiple offers, you have gotten more money than you would have if you were priced just a little higher and only attracted one offer.
Jo
Web Reference:  http://JustCallJo.com
1 vote
Steve Stewart, Agent, Palm Springs, CA
Wed Oct 20, 2010
How ironic that getting your home sold fast would seem like a mistake. Would you rather that your home had stayed on the market for months without an offer? That would have been mispricing and that's why so many homes never receive offers. They expire, are put back on the market a year later with a much lower price and then sell immediately. Correctly priced homes almost always sell immediately-usually within days. It's just that very few homes are correctly priced. Unfortunately, most homeowners refuse to listen to their agents, who know what buyers are willing to pay, and insist on over pricing their homes. Kudos to you for taking the advice of your agent. It doesn't happen very often. Consider yourself one of the smart and lucky ones!

Steve Stewart REALTOR
Coldwell Banker Residential Brokerage Palm Springs
760-600-6152
1 vote
Asha Dave, Agent, Edison, NJ
Wed Oct 20, 2010
Hi John,

You are lucky , in this market you get this multiple offer happens, in nj if we do price below the
other lsitings it happens other wise homes stay fotr 1 year .
good luck
1 vote
Heidi Zizza, Agent, Framingham, MA
Mon Oct 18, 2010
Sounds like they priced it to sell. A Smart move!
1 vote
J R, , New York, NY
Sat Oct 16, 2010
Just closed on a house Friday. I had been referred by a friend of theirs. I'd listed the friend's home this past spring and had an accepted offer in 14 days. These new clients said they hoped lightening struck twice, and they'd have the same luck. This time we had an accepted offer in 4 days. Both sets of clients were ecstatic. At the closing they thanked me profusely, saying, "we had no idea 6 weeks ago that we would be acheiving our dream of moving near our grandkids so quickly, thanks for being honest with us and helping us to understand what was going on in the market so we could get out as fast as we did."
1 vote
Michelle Roe…, , Belfair, WA
Sat Oct 16, 2010
A home that is priced right from the gate will sell quickly. When I do a CMA often times I will give a 30 60 and a 90 days plus value. You would be suprised how many clients will go with the 90 days plus and wonder why it does sell in the first 30 days! Your agent guided you well you should that them for a job well done.
1 vote
James Deskins, Agent, Worthington, OH
Thu Oct 14, 2010
IMO? Probably.

But I don't know your market.

Regardless, probably.

Seems like I'm in the minority here.

One offer right away? Probably priced correct. Multiple offers right away? All over full-price? I stand my ground.
1 vote
Darrell Hess, Agent, Marietta, GA
Wed Oct 13, 2010
No. If it was priced wrong you would of had 0 offers. Apparently you had a home that was in a desirable location and attractive price. In fact there have been studies that show an aggressively priced home actually nets more then an overpriced home when all is said and done.
1 vote
Becky Hill, Agent, Westlake, OH
Sat Oct 9, 2010
5-10 years ago I would say the seller and Realtor probably priced the property too low. In today's economy, the Realtor did his or her homework, conveyed it well to the seller and together they made the right choice by "Pricing it Right". As a result the buying public saw a "well-priced" property and before another buyer or Realtor got to the table, they made their offer and closed the deal on what I called the "Right Price Result". This overall scenerio will always make a seller wonder if they could have received MORE. In essence that should have been calculated prior to posting the listing. Bottom-line? There is always a factor of what is the cost to the seller if the property does not sell in a proper time period. With this kind of (fortunate) sale the sellers money is now liquid and ready to be invested into another great deal! Congratulations! Count your Blessings and Move on!
Web Reference:  http://realtyforme.com
1 vote
Building Not…, Home Buyer, 18235
Thu Oct 7, 2010
I can name at least 20 people that would love to be in this potision! WOW! You are so lucky John! Be thrilled it sold!
1 vote
Arzum Sanchez, Agent, Northfield, NJ
Thu Oct 7, 2010
Sounds like your agent hit it right on the money and priced it to sell. In are South Jersey Market area we also see homes going quickly as long as they are priced to sell.
1 vote
John Walin, Agent, Libertyville, IL
Thu Oct 7, 2010
Mr Howell

So what was your listing arrangement with your broker?? in your other question posted here you were looking for a 1% broker side and a 2% co-op listing arrangement. Did anyone take you up on that?


Some sellers biggest fear is to leave money on the table...

Starting out with a lower asking price is very clever and a way to create an auction atmosphere in this market. I just attended a Power Pricing seminar and it is a good idea to price a subject home 10% beneath the the active comps and 5% below the recent closed so it is a screaming deal to the active buyer pool really looking to buy. You must have a lovely home and even so, that updated master or fancy kitchen re-model helps the house sell faster not not you more money on the sale. It is a beauty competition and price war! All the serious buyers stalking an area know every house that comes on and if it is priced lower side of right they are less likely to pull shenanigans on home inspection and you might get a back up offer to boot waiving mortgage contingency or home inspection.

As to specifically having multiple offers with two days on market, I would have suggested that you ask everyone to submit their final and best and have a sealed bid opening one week later. Promote the heck out of the house and maybe get even more bidders that first weekend.
1 vote
Cynthia Hawk…, Agent, Strasburg, VA
Wed Oct 6, 2010
John,
Thanks Wonderful that the House had multiple offers so quickly. Apparently, your agent did their homework in knowing what to price to put on your home to be competitve in this market. Congratuations

Sincerely,
Cindy Hawkins, ABR GRI
Sager Real Estate
1 vote
Martha G. Mo…, Agent, Gainesville, FL
Sat Oct 2, 2010
It probably means it was priced correctly in order to receive multiple offers. That way the owner can choose the best offer from the most qualified buyer. Also, the timing might have been perfect for that type of property. I received a full-price offer on my own house the first day it was listed. My husband suggested that we underpriced it. I reminded him that we priced it slightly higher than we expected to receive. The right buyer came along at the right time. It seems a little strange to say, but it happens so often that a house will sit on the market for weeks, then suddenly several offers arrive at the same time.
1 vote
Phyllis McAr…, Agent, San mateo, CA
Thu Sep 30, 2010
Acually the agent was smart enough to price it to sell. Multiple offers are a good thing, the home may have be priced slightly below market, to get market value. Many Agents are afraid to price homes in this manner. It's smart.
1 vote
Carol Ryniew…, Agent, West Hartford, CT
Thu Sep 30, 2010
Sounds like your agent had it right! The first two weeks on the market are the most important! Your Agent did a great job!
1 vote
Hildi Baker, Agent, Media, PA
Wed Sep 29, 2010
To the contrary, the agent has priced the house correctly!
1 vote
Dagmar Mouri…, , Chandler, AZ
Wed Sep 22, 2010
John, I share your concern. Actually, I'm alarmed: several offers over full price? If there is that great a demand then that should translate into a higher price. Your property was priced too low, that's my opinion.
1 vote
John Harris, Agent, Manalapan, NJ
Mon Sep 20, 2010
Perhaps a better question is did the agent get you what you wanted? It doesn't matter if you are in California or New Jersey, buyers know exacly what a home is worth in today's market. They have more information than ever before. It appears these buyers recognized a well priced home in an area that they desired. Bingo. Many seller's wish they had your question. The bottom line is a home with a desirable location priced properly will generate this activity, it is up to the seller to accept or reject that offer. If you are satisfied, move on. Take the money and run.
1 vote
Dan Gonen, Agent, Scottsdale, AZ
Mon Sep 20, 2010
Congratulations to you and your agent on a job well done!

Pricing a house in a down sloping market is a challenge. I believe you are better off pricing the house just a little below the last comparable sale, get offers and negotiate to the price you were asking or even higher in your case. If you are have multiple offers you can also negotiate some other terms that will make your transaction better. This works better than pricing it higher than the market and expecting a lower offer.

Good luck on your move!

Dan Gonen, P.C.
"Working harder for you since 1993"
Associate Broker
RE/MAX Excalibur
Scottsdale, Arizona
888-55-GONEN
Web Reference:  http://www.FineLocations.com
1 vote
Larry Schott…, Agent, Columbus, OH
Wed Sep 15, 2010
not if that was the goal. pricing is purely a marketing function designed to attract attention to your home. I had this scenario and the seller also thought money was left on the table and they could have priced it higher. but they would also have not had three offers and the price would not have been bid up.
1 vote
stephen holb…, Agent, denver, CO
Wed Sep 15, 2010
Yes. You should reject the offers coming in, and get an appraisal. Then price the house 10% over the appraisal, and make your broker work.
Web Reference:  http://holbenhomes.com
1 vote
Gina Storeho…, , Charlotte, NC
Mon Sep 13, 2010
John,

I don't think it is for us to say whether it was mispriced without knowing any of the details. It will depend on if the agent did their homework, knows the area well and picked the proper comparables when determining the price. It also depends on the seller (not sure if that is you in this case or not), if they had indicated they were looking for a quick sale then agressive pricing is often the best course of action. After considering the absorption rates, many sellers are now choosing to list 1%-10% below fair market value (depending on their price point and market) in order to sell quickly and generate multiple offers. This approach offers the seller a quick sale, and in a declining market it will sell for a higher price than following the market down with multiple price reductions. Hope this helps!!

Gina Storeholder
704-299-5254
gstoreholder@cbunited.com
1 vote
Jacqueline D…, Agent, BELLINGHAM, WA
Mon Sep 13, 2010
Realtors do not pick a selling price out of the hat, they do their homework. That means getting comparatives from your area and consider the shape. style, condition etc. of your home. Every home has a buyer if it is priced right and if the buyer really loved your property. Your home might have been in the desirable area for the buyer and you must remember that this is a buyer's market and things happen fast. I do not know if this has anything to do with the tax credit but there was a time element in that procedure. This is always a thought that sellers have if their home has sold quickly. I remember selling a home that was on the market at 9:00 in the morning and I was there with a buyer at 10:00 and wrote up the offer. Two more people were interested after my buyer's offer. Right price, right place and on and on.
1 vote
Trevolyn Hai…, Agent, Highland, CA
Sat Sep 11, 2010
Hello John,

You wrote: 'I remember reading a definition of an appraisal as that price upon which a willing buyer and a willing seller will agree after the property has been exposed to the property for a reasonable time, or some such wording. Is this definition still accurate? Hasn't the third part of the definition been breached when an avalanche of offers come in exceeding full price at first pop?'- Depends on the sellers perception of 'reasonable time'. A seller that is ill & wants to sell to finance his operation will have a different view as to 'reasonable time' than a seller that has a contingency to find a replacement property & hasn't even started to look yet.

You: 'And can the seller legitimately refuse all the offers and insist on a relisting at a higher price without facing a lawsuit for commission by the agent who has, after all, produced a buyer who will perform in excess of the stated terms?- Probably not unless there was some gross negligence involved.

Re: the main question: The agent doesn't price the property, they do in their professional opinion suggest a price (and marketing strategy) but the Seller is free to price (and market) their property at what they feel will best achieve their goal of selling. Does the Seller of this property feel that they received enough information re: the current market conditions and comparable sales? Is the Seller of this property happy with the way the listing appears on the MLS and was marketed? Were all offers presented to the Seller? Is the Seller happy with the offer they accepted? Just because a property is on the market longer, doesn't guarantee a higher or otherwise better offer; actually, the opposite may occur.

John, it seems to me that we are missing a part of the story. We could probably give you better answers if we had more specific info.

Best of luck,
Trevolyn
lic.#01444353
1 vote
Robert Lei, Agent, Cupertino, CA
Sat Sep 11, 2010
Pricing a home below market value to generate buyer interst and create a bidding war is a viable strategy, but needs to be done correctly.

First, you shouldn't OVERDO it. I've seen a case where one agent underpriced the home by $100k and then took the first offer at only $30k over asking. By taking the first offer, that agent completely ruined the intended effect of the underpricing. You have to let more buyers swarm around that house and give other buyers time to find it and drool over that "steal" of a deal. If that agent had kept that house on the market for at least 1-2 weekends, then set a specific date and time for all offers to come in, the seller would have gotten the top dollar on their house that they deserved.

So to answer your question, your agent didn't misprice it, that was part of the strategy. However, he made a BIG mistake by only allowing 2 days for the interest to generate. He should have allowed more time for double, triple, quadruple the amount of bidders to join the frenzy.
1 vote
Oggi Kashi, Agent, San Francisco, CA
Sat Sep 11, 2010
John,

Have you considered the possibility that this was a planned move on the part of the seller and his/her agent? If a desirable property is priced below its market value, there is a great chance it will get multiple offers. Some seller are using this tactic to attract the maximum number of buyer on day one and create a frenzy. The lower the price, the greater the frenzy. In a highly competitive situation, it's likely for buyers to drive up the price to the actual market value or maybe even higher. A quick sale at a price close to or above the market value - not bad.

However, there is a chance this tactic may go south and sellers usually have a protective clause giving them the right to refuse any and all offers or countering the offers without being obligated to pay a commission.

Oggi Kashi,
broker Associate dre-1844627
Paragon Real Estate Group
Web Reference:  http://www.oggikashi.com/
1 vote
Holder Real…, Agent, Menlo Park, CA
Thu Sep 9, 2010
Hi John.

No. The housing market is just that, a market. The list price is arbitrary - just an indication of what the seller wants. Value is determined by the buyer(s) willing to make an offer on the home. The value is set in stone once the seller accepts an offer and the sale closes escrow.

Multiple offers is the best position for a seller to be in, especially in this market. Where people can get into trouble is in over pricing their home above and beyond comparable values for the neighborhood. This can lead to no activity at all - it is much harder to sell a home that no one wants to see or if you get no calls.

Another important note is that agents aren't the one's to set the price - the sellers do. Agents are advisors and serve to tell their clients like it is and then leave the decision up to the sellers. Some sellers want to vastly over price their home and any agent would tell them not to expect a ton of interest. There is a time and price for every home to sell, the question is whether the time to sell at a certain price is today, tomorrow, in 2 months or in two years. A seller's motivation to get results can have a huge affect on the list price.
Web Reference:  http://www.atlistings.com
1 vote
Tatiana Kogan, Agent, Brooklyn, NY
Sun Oct 24, 2010
Home Seller did you talk to sellers who can not sell their properties for two years, did their agents overpriced the listings? It was you who set the selling price in the first place and it was you who accepted one of multiple offers. Thank your agent for job well done and recommend him or her to all your friends and associates.
0 votes
Cami Rickard, Agent, Atascadero, CA
Sat Oct 23, 2010
I have read below the comments of Realtors who said that it is NOT a realtor who sets the price, it is the clients. Partially that is true. But people who are not in the real estate field are not experts at predicting how much their home will sell for. WE ARE. We are professionals who let our clients know what activity is happening in their market. If the house is priced low with multiple offers, and the agent didn't intend for a bidding war, that it is the agents fault. It is the selling agents goal to get the most money for their client. Of course we don't understand what this client and realtors strategy was in the question above. But from the information that was stated, I would state that the agent mispriced it.
0 votes
Katrina Stor…, Home Owner, Starkville, MS
Sat Oct 23, 2010
I responded to this question a few days ago and would like to add to the coments that followed mine. Sellers do set the price with the consultation provided by their REALTOR or agent and the information and knowledge they give to the seller including the CMA. A home may sell for any price a buyer is willing to pay in any market if the buyer is not planning to finance the purchase. Remember that the lender orders an appraisal and will most likely not be willing to loan more than the appraised value leaving the buyer to pay cash for the rest. Please see Thoughts of an Appraiser video on my website if you are interested in one appraisers thoughts and things he looks for when doing his job.
0 votes
Christopher…, Agent, Tarrytown, NY
Sat Oct 23, 2010
Hi, The seller is the one that sets the price. The agents job is to present the seller will supporting data and market info to help the seller price the property correctly. I always tell my sellers "I can't tell you what to price the home at, I can only guide you and give you my professional opinion". Under pricing is a technic that can go either way. Many agents do this in hopes to encourage a flood of activity and possibly multiple bids over the asking. I may recommend it as a strategy if there are other homes in the neighborhood for sale at the same price. Especially if we are the best value, under pricing by a few thousand dollars may make it no brainer for the prospective buyer. This is only done with the sellers approval after reviewing all supporting data.

Christopher Pagli
0 votes
Debo Cornett, Agent, Millers Creek, NC
Thu Oct 21, 2010
This Seller came to a professional forum to get confirmation that his agent did or did not do the right thing by him. He's obviously concerned that he might have left money on the table, which is very normal. What concerns me is the number of responses that actually confirm that the agent "may have mispriced the property". What? Who sets the price on the property? Not his agent. The Seller did when he signed the Listing Agreement. Yes, Agents provide market data, and from our experience suggest a price range for a guick and reasonable sale, but I don't price any property - EVER. In a forum such as this, it's a wonderful chance to clear up misconceptions of the public about the workings of real estate agents, which is the basis of the initial question "...has the agent mispriced it?". I wasn't privy to the data provided by his agent, and for that reason, I can't make any statement on the quality of that agent's service. All I know is, the agent did what all Sellers expect, and found a ready, willing and able buyer for his property, and in this case, they found several. What I can definitely say is "No, the agent did not misprice his property, because agents don't price properties - Sellers do."
Web Reference:  http://www.HomesOfWilkes.com
0 votes
Rich Lee, Agent, Lynn, MA
Thu Oct 21, 2010
John Howell,

The answer to your question depends on the agent's intent. If the intent is to create a bidding war, then the agent was successful. If the intent was to sell it as quickly as possible with his client telling him that price is more important than length of time to sell, then the agent mis-priced it and was not ethical in dealing with his client.

With that said, underpricing a house is a good strategy though contrary to seller's instincts. Check my web reference's point number 5 under "Six quirks of ownership" section.

Cheers,

RCL
0 votes
Robin Ricker, Agent, Titusville, FL
Thu Oct 21, 2010
That is possible, but unlikely. Each realtor compiles a CMA, comparing past sold properties similar to the subject property. The apprasial will be the real tell all. Find out what this property appraised for and you will have your answer.

I have seen properties listed under value just to generate multiple offers, which drive the end selling price up. In the foreclosure market, this is a common technique.
0 votes
Karen S Smith, Agent, Myrtle Beach, SC
Thu Oct 21, 2010
It is possible that your agent underpriced the home; however, there could be other explanations. In today's market, Foreclosures and Short Sales are throwing off the Competitive Market Analysis which is used to assess the current value of your home. As these foreclosures and short sales run out, the CMAs will become more accurate. It is difficult to determine how much over the recent low sales price in your neighborhood buyers are willing to pay.
0 votes
Tim Perkins, , Columbia, KY
Wed Oct 20, 2010
Every sell is different. Probally was mispriced but comps. could have showed actual listing price justification and the location was more desirable than average. I know this is happening frequently with foreclosures in our local market.
0 votes
James Dennis, , North Bend, WA
Wed Oct 20, 2010
In this market , if a listing sells that quickly with multiple offers above list price either the property was a very attractive home with many revealing qualities, or yes the agent may have mispriced it.
0 votes
Karl Dietrich, Agent, Vero Beach, FL
Wed Oct 20, 2010
Would you rather have a home that sits there for 2 years and chases the market down? Any good agent will have his hand on the pulse and find the right buy when the right house comes along for his client. Many owners fail to listen to their agent when they recommend a price. Sounds like a job well done.
Web Reference:  http://www.karlshomes.com
0 votes
Karl Dietrich, Agent, Vero Beach, FL
Wed Oct 20, 2010
Would you rather have a home that sits there for 2 years and chases the market down? Any good agent will have his hand on the pulse and find the right buy when the right house comes along for his client. Many owners fail to listen to their agent when they recommend a price. Sounds like a job well done.
Web Reference:  http://www.karlshomes.com
0 votes
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