More and more I am seeing the technique of purposefully underpricing a listing in order to create an artificial bidding war. It is a very tempting pitch from your listing agent, but don’t fall for it! They may want you to underprice in order to sell your home quickly and to move on. Their goal might not be to net you the highest amount. And it doesn’t work, in my opinion.
Example (ass described in the video)
Listing 1, our listing. $429,000, sold for $432,600 or 101% of list.
Listing 2, not ours. $399,000, sold for $433,000 or 108% of list
One might initially think listing 2 did better. However, #2 was listed a month after #1 went Under Contract fast (so they should know that it went near full price, and newer listings in an up market tend to ask for about $2,500 more). Listing #2 was nearly identical, but two floors higher plus a fireplace. Two floors is about $6,000 in value, a fireplace, maybe $2k. Yet they only got $400 more on a place worth $8,000 more. The result of underpricing to create a bidding war… a loss of $7,600-$10,000 in value. Oops!
Why doesn’t it work? Bidding War Exhaustion ™, (more…)
Posted in Bidding Wars
, Buying Advice
, Listing Advice.
| 7 Comments »
In case you missed it, a couple weeks ago FranklyRealty.com was featured in the season premiere of HGTV’s !
I had a great time with TJ and Stephanie. Thank you guys for being a great sport.
It took 9 months to find their home, and it was well worth the wait!
During that 9 months I also took some “behind the scenes” video with a point and shoot video camera. And since the show is supposed to be a behind the scenes view of buying a house, I called my own video a “behind the scenes, of behind the scenes.” (insert 3rd party laugh if you didn’t find that funny).
I hope to compile 9 months of outings and live negotiations into a mini webisode. It will be raw and informal, but hopefully you can really see more about how I work.
Apart from the full show I want to put on, here is one iPhone video that I posted on Twitter on their closing day. (Follow me at @FranklyRealty.)
and a funny little video here.
Dying for more reality real estate? Watch some oldies but goodies, with the D0UBLE AGENTS show from 5 years ago.
Don’t forget to subscribe for future postings.
Frank Borges LL0SA
Tags: Reality TV
Posted in Humor
, Reality TV
| 3 Comments »
Just some housekeeping.
1) Realtors. Tomorrow (Friday) June 19th 09 at 12-2pm at NVAR Herndon
2) For those of you that read this blog through your email reader, make sure to swing by and check out the new layout http://Blog.FranklyRealty.com
We now sell (more…)
Posted in FranklyMLS 101
| 1 Comment »
First my thoughts on the $700,000,000,000 bail out… I told you so!
Read my blog post from 12-2007 entitled: SIV= Imagine Enron, Bank Wide. (I posted it on my more frequent, but less polished blog on ActiveRain)
The #1 problem is OFF-BOOKS accounting! All of these sub-prime loans are hidden. Nobody knows how much exposure all the banks have.
Secondly, people have been emailing me asking what I’ve been up to and why I haven’t posted more frequently. Well, as some of you might know I’m in night school at Washington College of Law at American University. (I should be reading right now (more…)
Posted in Virginia Foreclosures
| 10 Comments »