tag:blogger.com,1999:blog-5465015914589377788.post2570434421328144196..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Real Estate Strategy: Low-ball Pricing to Create Bidding WarMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-5465015914589377788.post-86046720260126727962012-03-13T09:32:19.670-04:002012-03-13T09:32:19.670-04:00@Alex: It can be difficult to re-list a house for...@Alex: It can be difficult to re-list a house for a higher price. Agents know that it used to be listed lower.<br /><br />@Anonymous: The real estate agent agreements I've read say that if an offer is made for the asked for price, then the agent is owed his or her commission whether or not the homeowner accepts the offer. So, it is dangerous to offer a price that you're not willing to accept.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-31277300162201683172012-03-13T09:16:09.331-04:002012-03-13T09:16:09.331-04:00One reason to offer a lower-listing is to attract ...One reason to offer a lower-listing is to attract 'moveup buyers'. So if you list at $700,000 (common in TO) anyone using mls who sets a max at $650 won't see you. So you set it at $650.<br /><br />PS Ultimately the homeowner decides what to do, and the homebuyer sets the price. The homebuyer doesn't HAVE to accept the lower offer, afterall.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-36202912782754917082012-03-12T15:51:20.607-04:002012-03-12T15:51:20.607-04:00Interesting thoughts. I had also come up with thi...Interesting thoughts. I had also come up with this price significantly lower than asking idea, but only as a theoretical idea (I don't own a home). I just figured this would avoid the situation of you pricing the home at market value, and everyone offering a low ball offer to get it for a steal. Eventually you end up with a 5-10% less than asking agreement. This way you could potentially get more, or you could at least get what you would have been asking. If the prices you are offered is too low, just don't accept any of the offers and re-list.Alex Cnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-69721850659644972012012-03-12T09:25:20.254-04:002012-03-12T09:25:20.254-04:00@Potato: What you say makes sense from the point ...@Potato: What you say makes sense from the point of view of the buyer and seller. Agents who measure success in commission dollars may see things differently.<br /><br />@Ross: I don't know Boris and am not worried about his ethics. I'm more concerned with popularizing a sales method that less ethical agents can use to benefit themselves rather than their clients.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-56092905903298682692012-03-12T09:03:47.029-04:002012-03-12T09:03:47.029-04:00I agree realtors come in all shapes and sizes Mich...I agree realtors come in all shapes and sizes Michael - but I can personally attest to the veracity and professional ethics of Boris Kholodov - the interview subject. <br /><br />Only last week, one of my clients asked him to come to her home as she had decided to sell and go back to renting. She intended to sign a listing agreement with Boris. He refused, advising her it would be a mistake to sell, and that she should hold rather than sell.RossTaylorhttp://www.akross.canoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-88430418088684031992012-03-12T03:16:58.555-04:002012-03-12T03:16:58.555-04:00I never understood the fanfare over selling over a...I never understood the fanfare over selling over asking (i.e.: in a bidding war). To me, it should be regarded as a colossal failure of the agent in setting the asking price (and of the buyer's agents for participating in the frenzy).Potatohttp://www.holypotato.netnoreply@blogger.com