A couple of years back, I was in competition for a listing against an agent in a BIG NAME company. For some insane reason, the sellers decided to have us present our case to them at the same time.
I have no idea why, and if I had known about it ahead of time, I would have told them I needed to stay home and mow the lawn.
I had done all my due diligence and had a pretty good idea of what number to put on the house. I found an older listing for the house and looked at all the photos. I drove around their neighborhood and basically, I was comfortable with my numbers. If I walked into the house and realized that they had totally updated it, I had another set of comps with me that I could show them, and I could increase my suggested list price on the spot.
The house was in an area that boat lovers adore and was close to Annapolis without being right downtown. In any other market, the house would probably be priced at the mid-200's but our market is high and fair market value of this house according to my comps was 368,000.
The other agent arrived just as I pulled into the driveway. As you can imagine we were both a bit surprised to see each other. But, I knew her, so we were friendly to each other and I refrained from tripping her as we went through the door together.
Pleasantries were exchanged and we all sat at the kitchen table with sellers on one side and the 2 agents on the other. My competition began by telling them how awesome their house was. (It wasn't and how could she know, since they did not show us around. What a load of bull).
And she proceeded to tell them that their 3 bedroom one bath house would sell faster if they added another bedroom! (Whaaaat????? Where would they put it? The house was cramped and stuffed with junk as it was! And on top of that it SMELLED old.)
She set her price at 425,000. The sellers loved it! Raved about her presentation and her wonderful ideas. (Gag me with a spoon, really??).
I asked if I could look around. (I knew I was dead in the water when they said yes, and then offered the other agent a drink while they all sat in the living room, and left me to my own devices).
The house was exactly what I thought it would be. Small. Cramped. Needed updating in more ways than one. I felt my comps were right using my lower number.
Sellers, of course, were not impressed --not when they could "sell" for 425,000 and make all that profit. I knew I had lost because they did not so much as offer me a beer.
Long story short: The other agent got the listing. They did not add another bedroom as she suggested. The house sat on the market for over 6 months. The price kept going down. It finally sold for 365,000 with 8,200 closing help. I felt like sending them a sympathy card.
So much for Greed!
You want it sold? Price it right. They will come. They will buy.