patrick.net

I deal with many RE brokers throughout the country. What I’ve experienced in the Bay Area has taken me by surprise.
In several attractively priced listings, I found the same story. Example: Listing price $399,000; however, an offer of $450,000 was rejected by seller (bank). In reality, seller is looking for offers over $500,000. The property is then relisted for the same $399,000 a few weeks later. Why have the seller and broker agreed to list the property for such a low price if seller has NO INTENTION to sell that low? This is not an auction (auctions require special licensing). The only explanation: to lure unsuspecting buyers into an overbidding war, setting a precedent for future prospective buyers (“If you don’t bid above the asking price, you will never get the property”). In the end, many people lose valuable time. Effectively in official RE statistics brokers proudly showing how many properties were sold above asking price.