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Real Estate Question

I found a property that I like online.

It's a teardown because the house is trashed and termite ridden. The listing clearly says that it's a land-value sale.

However, it's in a very desireable neighborhood, and also in a great location. Lots of re-sale potential.

The house was originally listed at $610,000.

After 45 days, it's still for sale.

I was assuming that people aren't willing to pay the listing price, because it's been on the market for so long.

However, I checked yesterday, and the Real Estate Company actually raised the price on the listing to $700,000.

Why would they do that?

It's been on the market for a month and a half with no takers, and they RAISE the price!

Why would they do that?

by Anonymousreply 9December 1, 2023 8:38 AM

Only reason that would have happened is because the sellers insisted. Real Estate Companies don't raise the price, sellers do.

by Anonymousreply 1November 28, 2023 8:49 PM

Because the sellers are stupid.

by Anonymousreply 2November 28, 2023 8:54 PM

Presently, it's a function of interest rates. When sellers realize how expensive moving will be, their only options are to stay put or raise prices.

by Anonymousreply 3November 28, 2023 8:57 PM

It's a ploy. Raising the price by 3% is often done to give the impression that there is lots of interest in the property; it makes the property re-list as a "new" listing on some real estate websites; it also moves the property up into the bottom of the next pricing category.

by Anonymousreply 4November 28, 2023 9:06 PM

Can’t imagine them getting this price.

While it is true that new buyers are always entering the market and, hey, maybe that price will sound okay to one, those new buyers will presumably have a real estate agent who will be aware of the original listing price and encourage rationality.

In fact, I’d be surprised if anyone bothers to bid because they know that a buyer who just hiked the price is not going to all of a sudden accept $600k or whatever.

by Anonymousreply 5November 28, 2023 9:14 PM

Many real estate websites now include the listing price history as well.

by Anonymousreply 6November 28, 2023 9:24 PM

Either it's what R4 said or a comparable lot nearby sold for the $700k (probably calculated on square footage).

Clearly, not a smart move either way.

by Anonymousreply 7November 28, 2023 9:28 PM

[quote]Many real estate websites now include the listing price history as well.

Including whether the house has been under contract. The internet makes it harder to create the illusion of buzz.

by Anonymousreply 8November 28, 2023 9:40 PM

Today they reduced the price by $30,000.

What the fuck?

It went from $610,000 to $700,000 to $670,000.

What is the broker thinking, and why is he/she letting the seller do this?

It's really bizarre.

50 days on the market, and the price has been all over the place.

I don't know what to think about it.

by Anonymousreply 9December 1, 2023 8:38 AM
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