After reading this story, I get it. Why people hate real estate agents?
From the Hartford Courant, the theme of the story is this: list your condo below asking price, start a bidding war, if you (the seller) are offered asking price you want, tell the buyer, NO! Here’s how it works:
When David Chzaszcz put his family’s four-bedroom Tolland house up for sale in September, he took his real estate agent’s advice and listed it at $449,000, even though he was hoping it would sell for a higher price.
It goes on to say:
Chzaszcz’s agent, Rob Giuffria of Prudential Premier Homes, tells clients that pricing slightly below market value will generate the kind of traffic that creates a flurry of interest among buyers in the crucial early days that the house is on the market … Most sellers are under the mistaken belief that if someone offers them list price, they have to sell their home,” Giuffria says. “You can just say, ‘I don’t accept your offer”
Err … is this legal or ethical? Well, perhaps not ethical, but it is legal.
If it seems like a risky strategy, it’s not, according to several real estate agents who have used it recently. What people forget, agents say, is that a seller isn’t required to accept an offer, even if it’s for the full asking price
What are your thoughts?
File Under: If it sounds too good to be true … well you know the rest.
PS – I’m happy to report, I don’t know of any Boston broker using the above practice. If you do, let me know.