Can we eliminate Listing Price?

By
Real Estate Agent with Solutions Real Estate

What is listing price?  It’s a suggested purchase price of an item and more specifically real estate

 in this conversation.

Is it important?  Absolutely, in the “normal” market but in today’s world at least in my area not so much. 

1.       You have short sale listings that are listed way below comps just so they can receive any offer just so they can open negotiations with a bank.  The listing agent knows that bank will not approve this contract because comps don’t support that. 

2.       You have bank owned listed below comps so they can receive multiple offers so they can ask for best offer which pretty much turns this listing into blind auction where you cannot see what others are willing to offer on that house.

3.       You have listings that being converted into auction listing and the auction starts way below listing price and most likely reserved price not matching that listing price.

4.       You have “regular” listings that are priced way above comps because seller decided that what he wanted to sell that house for no matter what agent tells him.

5.       On the other side you have buyers who hear: “best time to buy”, “you can negotiate best price”, “buyers market” and they go out there and want to offer 20% below listing price no matter what market supports.  So they want offer 20% less than listing price on short sale that is already 20% below already lowest comp in the area.

 

So let me ask you this would it be better if we replace arbitrated listing price with suggested market value base on comps?

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Arizona Investor/ Realtor
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Out Of The Box!
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listing price
market value
buyers market

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Rainmaker
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Iran Watson
Marietta Real Estate Agent - Photographer
Georgia Elite Realty

You make some good points.  I try to advise my clients that the listing price is rarely what dictates what the house will ultimately sell for.  The biggest thing listing price affects is how many people walk through the door.  If they like how the home is presented online and it is priced competitively, they will come.

December 02, 2010 12:39 PM
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Rainer
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Andrzej Niemyjski

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