Strange Phenomena

In every semi hot to hot market I’ve been through there ends up being some pretty strange phenomena demonstrated by sellers. Not alot mind you, bur certainly enough to make one (me) scratch the old head. First of all, there’s sellers out there who actually weren’t planning on selling but heard about how hot the market. They think “what the heck! Let’s sell!” or something like that. What they then do is list their house pretty much in the shape it’s currently in without a whole bunch of preparation, staging or real strategic planning. I guess they figure that if the market is so hot they don’t really need any of that stuff…their place will not only sell but get multiple offers just cuz. What happens next is possibly the strangest of the strange. They, and their agent, decide to price the home a tad bit lower than the price they’re hoping for since that certainly will prompt those dreamed of multiples and those high over bids. And then…nothing happens! No offers. Lots of disappointment. Cue the phenomena…the seller and agent RAISE THEIR PRICE!

Like I said this doesn’t happen alot, but I’ve seen it happen consistently in this kind of market. A listing actually increases in price after a couple of weeks or more on the market. There’s just one little problem with this phenomena. It never works. If a house doesn’t get any offers at $875,000 why is it likely to get an offer at $925,000? Folks, if you don’t get offers, multiple or other wise at your asking price what makes you think that raising the price is going to motivate a buyer? I saw this yesterday at a listing on the Peninsula (which will remain nameless) and once again I marveled at the ability of humans to be in denial. If a house doesn’t get offers at the original price it probably wasn’t prepared well and as a result buyers don’t see value in it. If they don’t see value in it they typically don’t buy it. As painful as it is the solution is probably going to be lowering the price.

Comments

  1. Chuck Gillooley says:

    Jim,

    You should offer one of your famous gift cards if anyone can guess which address you’re talking about!

  2. Patrick says:

    Let me guess, the one on Marlin ave…

  3. Okay, I’ll bite, what’s the story on the tree’s in the picture? 😉

  4. Jim Minkey says:

    Patrick: Good guess but it’s not the Marlin place…which is a short sale and it’s routine for crazy things to happen with those.

    Sam: I Google searched “Pics of Strange Phenomena” and it came up. It is pretty strange the way those things grow…

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