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The Highs and Lows

October 02 2017
October 02 2017

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October 1, 2017

There was an article on Inman that I meant to read all week and as luck would have it, I searched for it last night and I couldn’t find it anywhere.  The emails that I saved from Inman referencing that article have also disappeared!  The headline had something to with the pitfalls of pricing a home too HIGH.   Conversely, I’d love to see an article on the pitfalls of pricing a home too LOW.   I work a bit in the Berkeley/Oakland and San Francisco markets where it’s customary to price a home below market value in order to generate multiple offers which would theoretically drive the price upwards. Recently, I came across one in our Marin market that was obviously using that strategy as well.

I’m sure there are several arguments for why that may be a good or bad selling strategy.  My new buyers struggle with the concept of having to offer several hundred thousand dollars over the asking price just to be in the running.  It’s also really hard to counsel them on “what’s typical” or “what might happen” when there are 17 offers expected, which is frustrating as a professional.  No doubt, that strategy may work to a Seller’s advantage and granted, the agent can count on fewer days on market making their job fairly predictable.

I spoke to several agents in the East Bay about what happens when an acceptable offer doesn’t come in on the designated offer date.  They said that they raise the price to what the seller would accept and call it “realistic pricing” in order to let agents know that the sellers are open to list price offers.  Personally, I wouldn’t want to be the agent that promises multiple offers to my seller and then has to go back and say, “Well, we didn’t get any offers so let’s forget our original plan and go with plan B.  Raise your price by $200,000.  Let’s see what happens then.”  One of our greatest values as a REALTOR is our ability to counsel our clients on what their homes are worth.  I’d love to hear your thoughts on the subject.

Last Thursday, September 28th was the first Association Executives Appreciation Day. For us, that means it was Andy (Fegley) Day! Elizabeth Mendenhall, our NAR incoming President promoted this day as a way for volunteer leaders to appreciate the services and the support that the AE’s provide for our association. Thank you Andy, for all that you do, often behind the scenes!  Working with a group of REALTORS can’t be the easiest thing in the world but you make it look like it is.  We hope that you had a wonderful day and that you have many many, many, many more days with us here at MAR.

 


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