Can someone help explain the egregious underpricing here?
I’m not talking 20%, but the listings that are obviously priced to sell 100% over list. I can totally see why the former case creates an environment that will result in a feeding frenzy and people overbidding as they don’t know the true value. But I genuinely can’t understand why you would list a home at 50% below its value. The people you bring in that have their budget filters maxed at 1.2 aren’t all of a sudden going to be able to bid at 2.4. And the people that want to pay 2.4 are going to do it whether the list price is 1.2 or 1.8. Would love to hear thoughts because my wife and I are really questioning these agents competency and values
Here’s a couple of recent examples:
- 287 Chenery St in Glen Park, SF. Listed at 1.15mm. Comps clearly put this going for more than 2mm. https://redf.in/BP0NqR
- 5451 Lawton Ave in Rockridge, Oakland. Listed at 1.195mm and multiple solid comps in the neighborhood have this going for 2.3mm+. https://redf.in/7PEkX9