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Regular Contributor
NoobInSF
Posts: 171
Registered: ‎12-27-2010
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On the market for months? Raise the price!

[ Edited ]

http://www.redfin.com/CA/Oakland/577-5th-St-94607/home/17522885

 

It's a dog-eat-dog world and I'm imagine being a real estate agent can be a tough job.

 

Nonetheless, I am always befuddled by the tactics they use.  The property in the link is in a literal ghost town area of Oakland.  There is nothing around it aside from a heavily trafficked frontage road.  It is almost directly beneath the freeway and the BART tracks.  It has been on the market for a year.  But, hey, let's raise the price even higher!!

 

Can anyone explain this strategy?  Sam Shueh, any input on this?

 

:smileyhappy:

Silver Trusted Contributor
SamShuehRealtor
Posts: 910
Registered: ‎10-27-2008
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Re: On the market for months? Raise the price!

[ Edited ]

We can skip the first statement.

 

I learned long time ago that there is no bad real estate invesment in the Bay area. 

 

Investors only look at cap rate, gross rent multiplier, and cash flow.  If it can be rented out sect 8 is OK then you can get a mortgage that is a buy.  Location is secondary. Owners do not live there.

  

Sam Shueh

Keller Williams Realty

Regular Contributor
NoobInSF
Posts: 171
Registered: ‎12-27-2010
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Re: On the market for months? Raise the price!


SamShuehRealtor wrote:

We can skip the first statement.

 

I learned long time ago that there is no bad real estate invesment in the Bay area. 

Actually if it was in South Bay like downtown SJ or SJSU campus I will jump on it get it sold quickly. This will go 750K-1 mil in South Bay.

Investors only look at cap rate, gross rent multiplier, and cash flow.  If it can be rented out sect 8 is OK then you can get a mortgage that is a buy.  Not familiar with the exact neighborhood I can not speculate if it will be sold with a price increase.

( I never venture outside of JLS. Taking the Bart and exit.) 

 

In South Bay regardless the neighborhood, permit status, owner died in one of these rooms,or sex offenders nearby, there is a buyer or 10 wanting to make an offer. The sellers always want way over than highest recently sold. It is getting out of hands.

 

Sam Shueh

Keller Williams Realty


  Hi Sam.  You aren't addressing the question:  Why do agents sometimes raise the price on an albatross that has been on the market for months?  What is going through their head?

Regular Contributor
ckaught78
Posts: 59
Registered: ‎10-03-2012
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Re: On the market for months? Raise the price!


NoobInSF wrote:

http://www.redfin.com/CA/Oakland/577-5th-St-94607/home/17522885

 

It's a dog-eat-dog world and I'm imagine being a real estate agent can be a tough job.

 

Nonetheless, I am always befuddled by the tactics they use.  The property in the link is in a literal ghost town area of Oakland.  There is nothing around it aside from a heavily trafficked frontage road.  It is almost directly beneath the freeway and the BART tracks.  It has been on the market for a year.  But, hey, let's raise the price even higher!!

 

Can anyone explain this strategy?  Sam Shueh, any input on this?

 

:smileyhappy:


I would say the price change is to get it to show up in search results again. You're talking about it.

Silver Trusted Contributor
SamShuehRealtor
Posts: 910
Registered: ‎10-27-2008
0

Re: On the market for months? Raise the price!

[ Edited ]

It is already implied, the seller thinks the home is worth the price.  In this market I am sure this home has turned down previous offers.

 

Rather than lowering it to get lower offers one raises the price. The sellers are in no hurry.

 

Silver Contributor
DealHunter0
Posts: 399
Registered: ‎04-05-2011
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Re: On the market for months? Raise the price!



I learned long time ago that there is no bad real estate invesment in the Bay area. 

 

 


Ridiculous RE agent propaganda.  In any market, no matter how undervalued there are always bad investments available.

Regular Contributor
NoobInSF
Posts: 171
Registered: ‎12-27-2010
0

Re: On the market for months? Raise the price!

[ Edited ]

SamShuehRealtor wrote:

It is already implied, the seller thinks the home is worth the price.  In this market I am sure this home has turned down previous offers.

 

Rather than lowering it to get lower offers one raises the price. The sellers are in no hurry.

 


 

The building has been on the market for a year and is unsold. there are no offers.  Or it would be sold.

 

The used house salesman is playing games with the price (as many do).

 

:smileyhappy:

 

 

Regular Contributor
Kenji4861
Posts: 165
Registered: ‎10-12-2007
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Re: On the market for months? Raise the price!

When I list anything on Craigslist for $X.. buyers always offer me ($X - $Y).  It's very rare for someone to offer me asking price.

Now I just list items for ($X+$Y) so when they offer the usual lowball offer, we both got the price we want.

 

This realtor "could" be using the same strategy  :smileyhappy:

Super Contributor
returningson
Posts: 349
Registered: ‎02-24-2012
0

Re: On the market for months? Raise the price!


Kenji4861 wrote:

 

Now I just list items for ($X+$Y) so when they offer the usual lowball offer, we both got the price we want.

 :smileyhappy:


Yeah, I do that too.  The problem is if NO offers come in anywhere near $X+$Y you either accept one of those offers or relist at a lower price.  

 

But real estate sellers in the Bay Area are either greedy or delusional - or both.

Platinum Super Contributor
buyinghouse
Posts: 5,879
Registered: ‎04-23-2011
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Re: On the market for months? Raise the price!


DealHunter0 wrote:


I learned long time ago that there is no bad real estate invesment in the Bay area. 

 

 


Ridiculous RE agent propaganda.  In any market, no matter how undervalued there are always bad investments available.


   So, does that mean nobody went underwater in the past years?:smileywink:

 

  Unless there are skeletons buried in the backyard, this property is not being managed properly. I don't know if the old lower starting price is working or not but the tactic of listing the house above what people would get interested in won't go well in this market as people are getting frustrated by higher prices and get sucked in into a fair price.

 

   Like another poster commented, you start with a price that is fair to you, but buyers may have another agenda. Some will buy it, others will nickel and dime you. Some will see a potential profit in it and others just see it as a home. Whoever has more interest in it will get it at the right price.

 

  I attended a flea market in the bay area for 3 times. The first time I saw this lady selling "things" by the thousands. I kind of thought she would ask $millions for them so I skipped her booth. Second week I see the huge pile, asked her about the price and she is selling the huge pile for $20. We are talking about thousands! I even gave away some to some unsuspected buyers that had some in their  hands and were ready to pay $0.50 a piece. I bought 2 lots from that lady, I made $2,200 on the first lot and still got another lot like that one sitting here in my garage, probably another $2,500. Had that lady asked me $300-$400 for those lots they will be still there or another guy would have bought them.

 

  Bad thing is that I had to use that money to pay my credit card debt:smileyvery-happy:....I am a rich poor guy with "things" to sell. They go for $3.00 a pop in Ebay but I sell them for $1.25 because I list them for $2.25 and they nickel and dime so I have room to negotiate and play the victim with the USPS shipping charges and what Ebay charges on top of that:smileyvery-happy:

 

  Now, I have a lot of land, walking distance to the beach in Idaho, anyone interested?:smileyvery-happy:

 

How many to go?:smileyvery-happy: