BILL CHERRY'S GREATEST DALLAS PARK CITIES REAL ESTATE BLOG: I Know. I'm a Fuddy Duddy

I Know. I'm a Fuddy Duddy

 

 

 

Things happen when I'm not looking.  And I usually mumble to myself, how can this be?

 

I have yet to go into the grocery store to buy a bottle of pickles marked 99 cents, only to take them to the check-out counter only to learn that another customer says he'll by the jar of pickles for $1.25, and if I want them, I've got to out-bid him.

 

Somehow real estate marketing has reduced its place of honor among professional-type businesses, and I don't understand how that has not been successfully challenged in court.

 

For most of the years I've been a broker --- 50 this coming year -- a listing agreement had a price and terms that the seller agreed to, and that meant that if a buyer met those terms, the seller had to sell.  It's a legal contract. No more negotiating.

 

Now we have brokers encouraging clients to under price their homes on the listing contract, when they have no intention of selling their home at that price.

 

I saw one the other day that had been priced at some $750,000 and the price had been bid up to in excess of $1,250,000.

 

I know I'm a fuddy duddy and you're welcome to call me that all you want.  But I believe this is a terribly sleazy way to do business; one that wouldn't have been tolerated just a couple of decades ago.

 

BILL CHERRY

Broker-Realtor

Since 1966

Direct: 214 503-8563

Comment balloon 10 commentsBILL CHERRY • August 14 2015 10:19AM

Comments

You are so right about it.  That creates bidding war and people get caught in overbidding for the stuff.  Its new marketing I guess!!!

 

Posted by Sham Reddy, CRS (H E R Realty, Dayton, OH) over 2 years ago

Comforting to know theremm are still productive, active folks around who know and use the term fuddy-duddy.

Posted by Ronald Gombach (The Gombach Group) over 2 years ago

Many so called "Buyer agents" are now instructing their clients to repeat the sins of last decade's Pre bubble era !!!

Posted by Michael J. Perry, Lancaster, PA Relo Specialist (KW Elite ) over 2 years ago

I don't know that this happens quite all that often (at least no here in Charlotte). But there is a time and place in my opinion for any number of pricing and marketing strategies. To take you example further, what then is the issue if a seller asks too much for their home... that also is a listing agreement seller agreed to at the end of the day.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (RE/MAX Executive | Charlotte, NC) over 2 years ago

Bill,

I was told by a Buyers Agent that he and the Buyer felt my listing was overpriced and couldn't understand how we came up with the list price for the property.  It's awful when I have to explain to another agent how the Seller and I came up with the list price.

Brigita

Posted by Brigita McKelvie, Associate Broker, The Broker with horse sense and no horsing around (Cindy Stys Equestrian and Country Properties, Ltd.) over 2 years ago

Your listing agreement provides for lowering of price or changing terms that the seller may approve. In the past it was never contemplated that the Seller would, himself, make amendments that were less beneficial to a proposed buyer than those specified in the listing agreement. Listing a property for a price and on terms you never intend to accept is an unethical ruse.

Posted by BILL CHERRY, Broker & Wealth Coach (Bill Cherry, Realtor) over 2 years ago

I would like to pull up a chair and popcorn when someone bids 750k on the house and there are no more bidders.

Posted by Rob D. Shepherd, Principal Broker ABR, GRI (Windermere/lane county) over 2 years ago

The simple economic principle of supply and demand drives price. In Boston, some areas and some listings attract so much attention that police are needed to direct traffic and receipt of "blind" offers (sight unseen) or 20,30, 50 or more offers on that property are put through. Many of these well-above asking price offers are in cash. Are buyers overpaying? Yes they are. But there is a renewed philosophy of buy and hold. Meaning "I'll live in it now and then I'll convert it to income producing property later in case the housing bubble bursts." Will it burst? Would you pay $400,000 for a 350 ft studio in Beacon Hill? It includes heat and hot water ($320 condo fee/month), but no parking. Starting price was $309,000. 16 offers. Gone in 1 day. Rental value $1850/ month. But the banks have their toes in it too. Only time will tell if they've learned from their mistakes or if cash sales have biased their lending decisions in favor of the consumer right now.

Posted by Martin Kalisker, Professional Standards & Legal Assistant (Greater Boston Association of REALTORS) over 2 years ago

Here in our part of the world, sellers adjust pricing based soley on if buyers are looking or not.

Posted by Bob Haywood, BobHaywood.com (McGraw Realtors) over 2 years ago

So how about this: When you, the agent, get a contract from a buyer that's at a price that is above the listed price, you tell your client, "By the way, I'm raising our agreed to commission from 6% to 8%." How far do you think that would go, even though it's pretty much based on the same logic?

Posted by BILL CHERRY, Broker & Wealth Coach (Bill Cherry, Realtor) over 2 years ago

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