Jill Sackler, LI South Shore Real Estate - Broker Associate (Charles Rutenberg Realty Inc. 516-575-7500)

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Patricia Kennedy
RLAH Real Estate - Washington, DC
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I've only done it once, and I was the 4th agent.  I had their scary dog sent to Camp Waggy, got it cleaned up and staged, and upped the price by almost 10%.  It sold with multiple offers on the first weekend.  It wasn't about the price, it was about access challenges - especially from Old Fang.

Mar 01, 2015 12:05 PM
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Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

The only problem with that is the appraisal.

Mar 01, 2015 01:01 PM
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

If the sellers listed it earlier at a slow time of year, it may be necessary to increase the price when listed in a  seller's market.

Mar 02, 2015 07:19 AM
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Paul S. Henderson, REALTOR®, CRS
RE/MAX Northwest. - Tacoma, WA
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I think it is a bush league tactic although if the client puts $40k into the house while it is listed I can see a price adjustment to be warranted...

Mar 02, 2015 07:13 AM
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Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
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Jill - I can't imagine raising a homes list price would help sell it unless two things are happening:

1. We are in a sellers market and home prices are increasing and sellers are getting multiple offers.

2. There were some major renovations done to the home since it was listed at the lower price.

With that said, I have recently seen agents raise the listed price of a home with absolutely no justification. I often say to myself, what are they thinking? If it didn't sell at $173,000, why do they think it will now sell at $179,000?

Mar 01, 2015 05:49 PM
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Debbie Gartner
The Flooring Girl - White Plains, NY
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It seems to me that this can only be done if there is added value. I worked w/ a realtor who raised the price.  We refinished floors and painter painted and I think they did a few other things.

But, in general, if it's not selling a current price, pricing it wo/ improviing won't work... it already has a value discrepancy.  totally different if it's a unique luxury property (e.g. $3-4 million or higher).

Mar 01, 2015 05:59 AM
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Shanna Day Team Leader AZ & UT - Call 480-415-7616
Keller Williams Realty EV (AZ) & Keller Williams SLC (UT) - Mesa, AZ
Top .0033% of 40,000+ Realtors in our MLS

I've done it quite a few times.  If it fails, it fails miserably and vice versa.  I've developed subdivisions where the interior lots sell really well and it's the undersirable lots on the entrance or exit that are the hardest to sell.  I've increased the price and boom - they sell!   Go figure. 

Mar 03, 2015 01:24 PM
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Alexander Hendrickson
House 2 Home Realty - Carterville, IL
- www.thehendricksonbrothers.com

In my opinion, it just doesn't bode well. Unless you are in the heat of an extreme seller's market, the buyer will invariably be asking themselves "what, and why?".

 

If there's ANY raising that goes on, it's what comes from pricing it just below market and getting multiple offers on it in a bidding war. THAT is what I like to see. :)

Mar 03, 2015 10:07 AM
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Jill Sackler - sometimes, it backfires!

Unless there is a very solid reason for doing this, I prefer not to. And at least in our market place, I have not seen this. (or I should say, noticed it.)

Mar 01, 2015 11:47 AM
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Cheryl Ritchie
RE/MAX Leading Edge www.GoldenResults.com - Huntingtown, MD
Southern Maryland 301-980-7566

It has worked on new construction. Prices go up in the Spring. 

Mar 01, 2015 11:38 AM
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Ron Marshall
Marshall Enterprises - Saint Michael, MN
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I like Ron & Alexandra Seigel 's answer.  I think that if you actually make some improvements in the case of decorating with paint and carpet or improving some fixtures of a bath, kitchen or other room where the fixtures will stay after closing, a price increase would certainly be warranted, and it might make buyers and agents sit up and take notice!

Mar 01, 2015 06:14 AM
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Andrew Scherer
Approved Mortgage Group - Doylestown, PA
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I've seen it work from time to time and usually not a ploy - more-so justify something new in the property, staging, etc.  If it truly is a ploy, not really sure how viable it would be.  Real estate is like the stock market - it'll sell for exactly what the market will give.

Mar 01, 2015 06:13 AM
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Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

When the situation warrants it has been a successful tactic Jill Sackler.   I don't consider it a ploy although I have seen it used as such. 

Mar 01, 2015 06:00 AM
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Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Jill,

I have seen it work a few times.  Once when the home was in a desirable location and the new agents brought in an interior designer and they did a lot of work and got it brilliantly spiffed up.  And once on an equestrian property where the price was raised from 50 million to 69 million and it sold also. A

Mar 01, 2015 05:47 AM
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Dipti Thakkar
LAER Realty Partners - Andover, MA
On a team with Praful Thakkar

It works sometimes.

 

Jul 09, 2018 09:55 PM
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Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

If it's a hot seller's market it may be a good idea.

May 13, 2018 05:32 AM
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Ajay Pandya
e-Merge Real Estate - Columbus, OH
Realtor Ajay Pandya

It is perfectly okay!

Feb 22, 2018 09:08 PM
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Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

parked and reading

Mar 27, 2016 10:29 PM
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Robert May
Robert W May - Lethbridge Real Estate - Lethbridge, AB
Real estate consulting

im just clicking back through some of the old Q and A's, looks like this one got lots of good answers.

Mar 01, 2016 02:02 PM
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Jill Sackler
Charles Rutenberg Realty Inc. 516-575-7500 - Long Beach, NY
LI South Shore Real Estate - Broker Associate

Shanna Day Mega Team Leader (AZ & UT) I really like your very sincere answer. "I've done it quite a few times.  If it fails, it fails miserably and vice versa." It seems like a 50/50 opportunity. Therefore, it's worth a chance.

Mar 07, 2015 10:57 PM
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Fred Cope
Reliant Realty in Nashville, TN - Nashville, TN
Looking For Homes With A Smile

Jill, I have seen properties severly under values for such reason as "quick sale", perceived derogatories, as well as agents marketing a property in an unfamiliar area [Aunt Sally from down yonder pricing based on a misguided perception.]   An extremely under priced property may scare people away for fear of "what's wrong withit?"

As others have suggested, recent improvements or upgrades may also justify the increase.  If I would be inclined to drop a price to bring it in line with the market, why would I not raise it for just cause?  Asking price is a target, not a divine edifice.

Mar 07, 2015 07:33 AM
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Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

unless there is some significant change in property condition, I wouldn't raise the price. 

Mar 06, 2015 07:07 AM
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Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

This strategy does not make sense to me.  As others point out, if the house didn't sell at a lower price.. it won't sell at the higher price.

Mar 04, 2015 01:24 PM
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Jill Sackler
Charles Rutenberg Realty Inc. 516-575-7500 - Long Beach, NY
LI South Shore Real Estate - Broker Associate

Thanks, Annette Lawrence for the clarification. I've got it now. It turns out I've experienced all those "poison pill" examples. Not however, with the originally stated property that was a part of my question. I believe that residence just went into foreclosure. It's never been anything BUT my goal to achieve the very best for the homeowner. With that said, I'd like to reiterate that a price increase should have something to show for it, something you can point to as proof that it was necessary. You've opened my mind, though, to issues I wasn't taking into consideration when I wrote this - like Cujo or Tuesday morning showings from 10:00 to 11:00 (true.)

Mar 02, 2015 09:43 PM
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Debbie Reynolds
Platinum Properties - Clarksville, TN
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I had a broker years ago that used this tactic to get properties sold. Amazingly it did work and almost immediately after a price increase. He said when you bottom out a price consumers think that something is wrong with the property and are wary. If they do make an offer it is often less than the lower price because they don't want to get burned. Makes sense to me.

Mar 02, 2015 09:00 AM
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Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

JILL: "I just don't believe the price increase is warranted without renovations, staging, or, at least, the beginning of the selling season."

Jill, with the experience and skill you bring, I am highly confident you have prevailed over low appraisals, Zillow deception, opportunistic buyers. You prevailed because you were able to present the REAL value to the buyer in the right market segment. It is this understanding and the value of your list that enables the price to be raised to represent the right value to the right buyer.

 

JILL:"I'm not clear on your "poison pill" analogy."
Poison pills as another has mentioned could be the dangerous dog that prevents showing, the buggy-eyed barking dog that prevents the buyer from actually seeing the house without clasping their hand over their head, limited showing availability (but a smart agent can make this work greatly to their advantage) limited service listing, or inadequate compensation, offensive exhibits in the house, are other examples of a poison pill. 

As a 'Warrior' agent, you have the war wounds, been tested by fire, and are fully aware of what you bring to the table, how to best market the house and to whom it should be marketed. You also know you are not targeting a misinformed Zillowite or CL voyeur. You are targeting the right buyer for this real estate. In so doing you can present the tangible assets in the context of value, benefit, privilege, prestige, security, opportunity and the right value that will prevail over the opinion of the appraiser and the subversive influence of Zillow. Good marketing results in more beneficial pricing.

Bad marketing is what you see on HSN, "$19.99, and if you buy now, you get the second one FREE." This is an example of the product is forced into a price bracket. This is not how real estate should be marketed. Don't let the mistake of those who preceded you, become your mistake.

Yes, the right buyer WILL bring 30, 50, 100 thousand dollars in cash to the closing table to buy the house they want.(A transaction architect will be able to bring even MORE value to the seller in this situation) I trust my ability and have a proven record, so I will and have a duty to raise the price if warranted. It is my job to achieve the very best outcome for the owner. It is a misguided goal to sell it easily and quickly unless the owner situation merits taking a hit.

Each home sale situation if different. As a WARRIOR, it is incumbent upon you to be fully present, assess fully the situation, and set the path that leads to the best outcome for the owner. 

It is an egregious mistake to assume to know what the agent who made the 'ploy' is working towards. All you can do with integrity is assess the outcome.

Mar 01, 2015 11:29 PM
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Jill Sackler
Charles Rutenberg Realty Inc. 516-575-7500 - Long Beach, NY
LI South Shore Real Estate - Broker Associate

Annette Lawrence Oh, no, I definitely want to hear your thoughts or else, I would not have asked the question. I understand it's a technique used to pique curiosity and interest. I just don't believe the price increase is warranted without renovations, staging, or, at least, the beginning of the selling season.

A lot of respondents took issue with my use of the word "ploy." Perhaps, my perspective was tainted by an experience not completely of my own creation. However, if other agents are doing this successfully, I would not be opposed to trying again under different circumstances.

I'm not clear on your "poison pill" analogy. It feels slightly cryptic and in combination with a Feng Shui vibe, beyond my total comprehension. However, I would reply to your thoughts on "raising the price to its true market value" by saying that it had already been done.

 

Mar 01, 2015 10:17 PM
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Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Jill Sackler , because you included the word 'ploy' in your question, it is clear you already have reached a conclusion and it is unlikely you could hear another. That won't stop me from trying.

I am sure you are aware, many agents in your area use the PPP marketing system. You know who they are. If the previous agent was one of those, don't you think you bring much greater value and resources to the table that will benefit the home owner?

I am sure you are aware, many agents hire a middle school student to write the house description, "Beautiful 3 bedroom, 2 bath pool home. Must See. This house won't last long."  Don't you think you bring much greater value, vision and skill to the table that will benefit the home owner?

I am sure you are aware, some agents work for some no-name boutique agency with only a local presence. Don't you think the global market you can reach brings more to the table that will prove very beneficial to the home owner?

Perhaps the home was listed with a poison pill included that compromised the house's marketability. Don't you think after elimination of the poison pill that the seller thought would fill their pocket with more money, the outcome will be more motivated buyers and more agent advocates. Don't you think by fixing faulty thinking will prove very beneficial to the home owner?

Now, it is EASIER to NOT consider raising the price to the true market value. But is that beneficial to the home owner?

Mar 01, 2015 09:28 PM
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Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

The only time I have seen this happen is when someone enters an incorrect amount, like not enough zero's and they fix it.  Today I am rasing a price to reflect an offer price about listing price in a hot market.  No appraisal issues then.

Mar 01, 2015 11:33 AM
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Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

In our strong Seller's market, we see this all the time, if the home is on the market for longer than a week. 

Mar 01, 2015 11:09 AM
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William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I VERY seldom will raise the price after it has been on the market.  Does no good.

Mar 01, 2015 11:03 AM
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Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

I've never done this as a "marketing ploy." I've done it numerous times on listings where I was the second or third agent in and felt house was underpriced and attracting the "wrong" buyer.

Mar 01, 2015 10:55 AM
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Mike Cooper, GRI
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Jill, I've seen a few agents who just randomly bump the price up on their listings. No known reason, but up they go. I've never seen one sell at the higher price. 

Mar 01, 2015 10:28 AM