April 1, 2008
Reversal of Fortune Real Estate Style
Have I ever mentioned how much I hate real estate price increases? I don’t mean increases in market value. I’m talking about sellers who arbitrarily, randomly or purposefully raise their asking prices while their homes are actively listed.
There could be several reasons why a seller would do this. Maybe they didn’t appreciate the true value of their home initially and somehow came to be better educated during the process, necessitating a higher asking price. Maybe they got some bad information and felt the need to make a correction. Or maybe they are playing the low ball game, hoping to lure interest in their home and cause a false sense of urgency by drawing multiple bidders willing to compete with each other.
Honestly, I don’t care for any of these excuses or rationales. They’re all based on confusion and, ultimately, not good for the buyer(s) or seller. If the seller’s agent is responsible for any of these mishaps, perhaps a better option would be to pull the listing, shop for a serious agent and re-list the property with a clean slate.
3571 Herman Avenue - 1923 single family home in North Park. It has three beds and two baths; 1,316 square feet and priced at $418 per square foot. Short Sale. Was asking $525,000, price recently increased to $550,000. It last sold for $550,000 on September 26, 2005. Its Zestimate is $548,000 and cyberhomes valuation is $514,305. On Redfin 55 days.
4355 Hermosa Way - 1914 single family home in Mission Hills. It has five beds, four baths; 4,019 square feet and priced at $571 per square foot. Was asking $2,249,000, price recently increased to $2,295,000. It last sold for $2,025,000 on August 1, 2005. Its Zestimate is $1,597,500 and cyberhomes valuation is $1,781,109. On Redfin 61 days.
2412 30th Street - 1926 single family home in North Park. It has three beds and one bath. It is now off the market, but right before it disappeared, the asking price was raised from $390,000 to $400,000. That makes me think the increase was directly related to the sales transaction and financing arrangements. Its Zestimate is $495,000 and cyberhomes valuation is $470,547.
If you liked this post you might also enjoy:
Listings Lingo - A Real Estate Double Dare
High Brow, Low Brow - Ocean Beach
Toys for Boys (and Grit Iron Girls)
Mayhem, the Market and Messy Monsters (What a Whammy)
I Sure Wish You Hadn’t Done That
