Comments on: The Importance of Rules – Please Play Nice http://blog.redfin.com/sandiego/2008/03/the_importance_of_rules_-_please_play_nice.html Redfin San Diego Sweet Digs Thu, 09 Feb 2012 19:42:29 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Carol http://blog.redfin.com/sandiego/2008/03/the_importance_of_rules_-_please_play_nice.html/comment-page-1#comment-5386 Carol Wed, 19 Mar 2008 02:38:21 +0000 http://blog.redfin.com/sandiego/2008/03/the_importance_of_rules_-_please_play_nice.html#comment-5386 I get it, subtlety and all. I still don't agree entirely. My point is about unspoken rules/expectations and how they are manifested in an asking price. Now, if a seller ups their asking price by $200k after an offer is made? I personally would walk away. I'm no more a fan of price fluctuations than anyone else and I don't like trick foolery. But that's not the context of this post. I get it, subtlety and all. I still don’t agree entirely. My point is about unspoken rules/expectations and how they are manifested in an asking price. Now, if a seller ups their asking price by $200k after an offer is made? I personally would walk away. I’m no more a fan of price fluctuations than anyone else and I don’t like trick foolery. But that’s not the context of this post.

]]> By: Steve Leung http://blog.redfin.com/sandiego/2008/03/the_importance_of_rules_-_please_play_nice.html/comment-page-1#comment-5215 Steve Leung Sat, 15 Mar 2008 21:01:26 +0000 http://blog.redfin.com/sandiego/2008/03/the_importance_of_rules_-_please_play_nice.html#comment-5215 Carol, What the late Bob Bruss is saying is more subtle than advice about blindly ignoring the asking price. The implication is that the list price should be inconsequential to <a href="http://www.1siliconvalley.com/the-thought-process-behind-making-an-offer-on-a-home/" rel="nofollow">your own and your own agent's valuation</a> of the property. Let's take a cartoonish example. Let's say a home is priced at $1M. You work with your agent to value the property and see it's worth about that. Suddenly the seller raises the list price to $1.2M. Without additional information, does that mean the home is worth $200K more? Absolutely not. In negotiation, you clearly have to put yourself in the <a href="http://www.1siliconvalley.com/how-buyers-can-walk-in-the-shoes-of-sellers-and-listing-agents/" rel="nofollow">shoes of the seller and the listing agent</a>. But the list price is the best marketing tool a seller has in order to attract clients to a property. Sometimes, that price is set low because they want to attract enough attention to create a blind-auction scenario. If you factored the list price into your analysis, you would undervalue the property and miss the deal. We can agree to disagree but I think it would be irresponsible for a good buyers agent to allow the seller to influence what should be a neutral evaluation of value based on the best information out there. What price at tactics it takes to complete the deal is a completely different story... Carol,

What the late Bob Bruss is saying is more subtle than advice about blindly ignoring the asking price.

The implication is that the list price should be inconsequential to your own and your own agent’s valuation of the property.

Let’s take a cartoonish example. Let’s say a home is priced at $1M. You work with your agent to value the property and see it’s worth about that. Suddenly the seller raises the list price to $1.2M. Without additional information, does that mean the home is worth $200K more? Absolutely not.

In negotiation, you clearly have to put yourself in the shoes of the seller and the listing agent.

But the list price is the best marketing tool a seller has in order to attract clients to a property. Sometimes, that price is set low because they want to attract enough attention to create a blind-auction scenario. If you factored the list price into your analysis, you would undervalue the property and miss the deal.

We can agree to disagree but I think it would be irresponsible for a good buyers agent to allow the seller to influence what should be a neutral evaluation of value based on the best information out there. What price at tactics it takes to complete the deal is a completely different story…

]]> By: Purva Brown http://blog.redfin.com/sandiego/2008/03/the_importance_of_rules_-_please_play_nice.html/comment-page-1#comment-5089 Purva Brown Thu, 13 Mar 2008 15:18:16 +0000 http://blog.redfin.com/sandiego/2008/03/the_importance_of_rules_-_please_play_nice.html#comment-5089 Carol, Yes, I think the price is not arbitrary. The seller and the listing agent might have some reason for the price, even though the reason is wrong. To offer way below asking does put a damper on things and doesn't help anyone get to the next step, which is negotiation. Thanks for the mention! Purva. Carol,

Yes, I think the price is not arbitrary. The seller and the listing agent might have some reason for the price, even though the reason is wrong. To offer way below asking does put a damper on things and doesn’t help anyone get to the next step, which is negotiation.

Thanks for the mention!

Purva.

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