Today’s housing market is competitive. Bidding wars are increasingly common, and many homes sell in eight days or less. So why do some sellers raise their asking price a mere two weeks after listing a home? We asked a panel of Estately’s trusted partner agents to provide insight into this conundrum. Here’s what they had to say.
Jacque Lyons – Chattanooga, TN
Our market is seeing price increases, but not enough to justify a price increase just for the sake of inflation. The only parties increasing prices are builders who find they have underestimated their cost when building a new home. Since it’s easy to see the history of the pricing of a home on MLS, any buyer’s representative could easily see that the owners were agreeable to a lesser price 2 weeks ago, and use that when making an offer. I don’t think price increases, after the initial listing price, would work in my market.
Jennifer Hamilton – Seattle, WA
If the market were as hot as it is now, and I didn’t have many offers already, I would take that as a sign that we’re overpriced, not underpriced. I can see that if we came on the market and were immediately inundated with activity and offers—then I would say pump the brakes, we need to make an adjustment. Otherwise it seems like a publicity stunt that a wise agent would smell a mile away.
John Breen – Jacksonville, FL
Normally the seller is dropping the price if anything, but there are a few reasons why the seller might increase the price.
- They ordered an appraisal, and the appraised value was higher than the current asking price.
- The seller improved the property with some fresh paint, new flooring, or even a new roof, and they’re passing along the cost of the improvements.
- The seller notices a nearby house that is very similar (but of course not as nice) just closed for more money than the seller’s asking price.
Ramonita Acevedo – Miami, FL
One reason would be if the home were listed below market value from the start. Maybe the seller saw other properties in the area that have sold for a higher price, or the seller made upgrades or repairs to the home after it was listed.
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