Sold prices wouldn't (or shouldn't) change, Michael.  Sure, you wouldn't have any active listing prices to compare, but you'd still have sold comps.

As I said, probably won't happen in my lifetime, Jeff/Heather, but it would definitely "raise the bar." :)

Don't know if it'd work either, Gabe, it would definitely change the way houses are bought and sold, wouldn't it?

Deborah, it's good to throw out other ideas sometimes to shake it up a bit :)

J. Philip, I say that the only way you can truly underprice a listing is to price it cheap, then do a really crappy job of marketing it.  That way, you'll have very little buyer response.  Now, that's underpricing.

Glenn, I'd assume if something like this ever really did take hold, that the whole business model would change.  The buyer would have their price range and the buyer's agent would be responsible for finding properties that could reasonably be bought within that price range.  Definitely puts more responsibility on the buyer's agent, doesn't it?

Well, Chris, every system has it's flaws.  I could write a few posts on some with the way things work now, but we get to read the gripe posts almost daily anyway.  A system like this would definitely put more pressure on the buyer's agent to know their market.  I'd also say that a one dollar system would force buyer agents to work a smaller market, but be more knowledgable about it.  Finding a home for a buyer in their price range?  Come on, Chris, don't tell me that if a buyer walked in today and said that they wanted to buy a house in the $125-150K price range, 3 bed, 2 bath, etc, etc, that you wouldn't already have a neighborhood or three in mind that fit the criteria. :)

Chris/Stephanie, it would force agents to truly know their market and be at the top of their game.  I'd say that's really raising the bar.

Thanks, Ken.  It would definitely change the market I think.

Janet, it probably wouldn't stop lowball offers, but it would make them less of a hassle because you'd more than likely have dozens of offers on a desirable home and the lowballs would never get looked at in the first place.

Now Bob, careful...my head may swell! :)

The public needs a starting point, Greg?  For what...to know what to buy, how much they can buy, simply because they're too dumb to have any idea of value for a property unless it is spoon-fed to them?  I don't buy that.  Most buyers have a good idea of what they want, where they want it and about how much it'll cost.  A system like this would simply put the responsibility of guiding them to the right house on the buyer's agent.  It would definitely make the importance of having a buyer's agent clear to the buyers.  And Greg, at least I have a drawing board! :)

Ted, I too have seen a similar approach by some lenders and their REOs.

Tamara, I'd say that this would be as close to 'no haggle' pricing as you'd be able to get in housing.  Buyer's make an offer and it's either taken or not.

Joe, few things are without flaws, but I'm with you.  Anything's got to be better than that.

Won't anything be close to this in our lifetimes, Ken.

Nancy, if something similar to this ever did come about, the whole "earned commission" would be a thing of the past anyway.  Pay would be based on performance and/or fee-based, with the top people willing to charge more...and get it.  No more just out of school, no experience newbie able to charge and get the same as a 15 year veteran with a solid track record of success.

As said, Barbara, not my life time...but maybe someday.  Thanks for the comment.

Professional self-esteem, Brian?  I'd say that in a system like this, a seller would need the services of a professional, knowledgeable, experienced listing agent a heck of alot more than they do now!  There's nothing to keep them looking for the cheapest solution...with this method or what we have now.  And just as now, sometimes you get what you pay for.

You said it, "Listing agents, your client depends on you to be the expert, to guide them through the home-selling process. To help them net the highest possible price in the shortest period of time, with adjustments based on their needs."  Nothing of that would change, except maybe the time on the market.  Is that such a bad thing?

As far as "devaluing" oneself, I'd say a system like this would greatly add value to the listing agents that can truly get the job done vs. those that can simply put the property in the MLS and Internet and "hope" it sells.

Thanks, Dan.  Be hard to go on to the next one if every one of them was "make an offer" wouldn't it?

Corinne, I think you under estimate potential buyers.  Again, if a system like this was ever put into the mix, then I'd doubt that there would ever be any "wasted" time anymore, as the pay structure would most likely change as well.  Buyer agents probably would getting upfront fees instead of hoping for a commission at the end, and the most successful buyer agents would be able to charge more for their time.  I never stop thinking and I'm rarely short of ideas.  Thanks for commenting.

Sure, they'll always be those thinking that way, Danny.  However, if you're looking for only the highest and/or best, I'd doubt that their offers would ever be looked at as there would already be better ones on the table.

Brian, I too feel that I offer something truly different than the "standard" agent of today, so I understand perfectly where your coming from.  I still don't think that a system like this would really take anything "off" of the listing, as sellers would still want to know what you think it'll sell for, what time frame, etc, and most important, what you plan to do in order to get it sold.  That would be the standout criteria, same as today, "can you get it done."  The difference...the seller wouldn't be tied to a crappy agent that couldn't for months and months.  They'd know fast!  Course, it's all fantasy anyway, so we'll never truly know.  Thanks again.

Ron, I think it would be a great way to separate the good and bad agents, that's for sure.  I think that if something like this ever did take shape, then the entire pay structure for agency would change.  I'm not sure that sellers would go for paying the entire cost of agency anymore.  Likewise, as listing agents, what you can (or can't) do would come into play more.  The better agents would be able to charge more.  Think of attorneys as just one example of how this would work.  Buyer agents, especially good ones, wouldn't waste too much time with lowballers, looky-loos, etc, before they too would start charging retainers.  Nowadays, getting a client to pay a retainer is next to impossible, but again, with a system such as this, good agents would be able to charge and get more than others.

Larry, I'm sure that one day what we now consider "standard" real estate will change drastically, whether it's something like above or totally different, who knows.

BB, you're probably right there.  One of the things that make something like this special is that it's unique.

Thanks, Malik

Michelle, then according to the laws of supply and demand, they still got true retail for the properties.  I'd also say that it did indeed save them money because instead of sitting on the market 6-8-12 months to arrive at that price, they did it in a month or less.

Jason, every method has its issues, that's for sure.  As I stated before, the definition of "market" as it relates to the agent would probably shrink dramatically under a system like this.  The bigger the current market is, likely the more specialized the markets would become.  For an area such as yours, I'd guess that agents would focus on a particular county, zip code, or maybe in just a few neighborhoods.  You'd have to be highly specialized I'd think.  But as you said, it's all in fun anyway.

Okay, guys and gals, this was presented as a concept.  A novel idea whose primary purpose was to drive home the point that there really is no such thing as an under priced listing.  The market will ultimately decide the price of the property, No matter what the listing price.  I understand that this concept doesn't fit neatly into the existing box, and that's the point.  If something like this were to ever take shape, the existing box wouldn't function anymore.

Matt, case in point, if this became standard practice, a buyer simply would not go on the Internet to search for homes in the $100-125K range, because it wouldn't work that way anymore.

Yeah, Lee/Pamela, whoever actually tries this first will have some eye-popping sellers, I'm sure.

Lisa, I don't practically see this happening either.  Thanks.

Not sure about  the agent rating system, Brandon, but I see where you're coming from with it.  To me, it would simply put real estate agents more in line with other service industries.  Again, compare it to attorneys.  Basically any one of them can do what another does, but they each charge differently based on experience, performance and/or specialization.  Same concept to me.  And I'd love for someone to run with this and actually make a practical application for it.  Thanks.

Paige, BB, as I mentioned, wrote an article about price ranging.  It can be a bit confusing and the first people you have to convince of any change to the system would be the agents.  If they don't get it, it's likely never going to go anywhere.

Concept only, John.  I don't have all the answers to every possible issue with it.  That said, I say that they still would.  There would still be sales which gives comps and a good buyer agent would be able to tell them the price ranges homes in particular neighborhoods would normally sell.  As to builders, I don't know.  If something like this were to start, they'd probably have to figure out something fast.  Besides, do builders still exist in today's real estate :)

Thanks, Pat.

Robert, I'd guess that the entire pay structure would change if this were in place.

You're right, Lawrence.  Too low, and the seller comes across as desperate to sell or maybe that there are major issues with the property.  Too high, and most buyers will never look at it, assuming that the seller is not in tune with the market or that they are one of those sellers that have a "special" property.  The real trick in today's market is to price it aggressively enough that it still appears to be a "deal" to the majority of buyers, but not so much that it creates concerns for buyers.  Thanks for commenting.

Frank/Sharon: Again if something like this were to be put in place, then there would definitely be something in the contracts that would take care of that.  Stating only highest and/or best offers will be considered would probably be enough since it's very, very doubtful that the highest offer is going to be $1.  Of course, if this type of system was here, then I'd also doubt that the law on specific performance would be as it is now, either.

Thanks, Tammie.

Way to think positive, Terry!  You're putting today's laws on a concept that clearly wouldn't won't with the system of today.  IF something like this were implemented, Terry, then the laws concerning real estate would look much different than they do now.

Nicholas, how do you do that NOW?  Answer that one, and I'll answer yours :)

Thanks, Ann.  Just a concept to show the possiblities.

Interesting, Deborah.  So you're saying that while the market is supposed to determine value, the underwriter and especially the appraiser base their starting points off of the listing price instead? Hmmm

Christa, you may be referring to the book, How to Sell Your Home in 5 Days by Bill Effros.  I have been involved with a round-robin style sell as he discusses in his book and if done properly, I have seen them be very successful.

Lisa, I could definitely see that happening this took hold.  Of course, if this method was used, I'm not sure if reserve prices and buy it now prices would be a bad thing.  Thanks.

Anna, great minds do think alike! :)

Damon, I guess that depends on what is your definition of 'top dollar.'  Yes, auctions work on the same basic principle...if marketed correctly, given enough time, an auction brings the 'top dollar' for that property on that given day.  That's true fair market value in a nutshell.  If by top dollar, you mean waiting 6 months to 2 years to sell, then all you're doing is advertising it until the market catches up with what you consider 'top dollar.'  Thanks for the comment.

Dan/Amy, Now that is a truly scary thought! Thanks. :)

I'd say that every property done right, would receive tons of offers, Brigita.  Thanks for the comment and the reblogs!