San Francisco Real Estate - Residential

Interesting San Francisco real estate Blog

Recently we became aware of SocketSite, a San Francisco real estate blog. The topic this morning was "deceptive practices of Realtors". It was put forth that instead of reducing the prices on listings, agents are pulling the property from the MLS and relisting it at the reduced price leading people to believe that the home sold for over the asking price, when in reality it may have sold for less than the original listing price.

Of course, I had to put in our two cents worth by commenting the following:

"What people here are saying here has some truth... from the BUYERS point of view. However, having worked with a Realtor, I see the other side, the SELLER'S side, more clearly.

"Imagine you're trying to sell your property now after witnessing a frenetic market like we had a couple of years ago. You want the best price and expect it. Your Realtor suggests you put it on at $1,995,000. You insist that it is worth $2,500,000. It sits on the market for 3 months before reality sets in and the price is reduced to $1,995,000 which generates multiple offers and goes over the reduced listing price.

"If the price is only reduced in MLS, it creates the impression that there is something wrong with the property. (What problems made them lower the price $500,000?) And even with the new price, the listing becomes stale. Many Realtors may not see it again, or forget about this listing which is not serving the best interest of the SELLERS.

"Finally, don't forget, if the property had been withdrawn and placed with another broker, it would have shown up as a new listing anyway at the reduced price."

The bottom line here is that statistics may lie, or at least not tell the "whole" truth. When responding to a request for a CMA (comparative market analysis), the Realtor will bring a list of sold homes that compare to yours in order to suggest a listing price that is realistic in that day's market.

It is our practice (and most Realtors in the City will agree) that we NEVER tell the prospective seller that the house will go a certain percentage OVER the listing price! The statistics from the MLS are just that... statistics and should not be counted on.

We'd love to hear your comments.

- Mick Orton

posted by SFResidence.com @ 8:02 AM