We’ve written about it before, and this little story is a good example. The wisdom? Listing prices mean nothing. The reason they mean nothing is because sellers have a million and one reasons why they list their properties at certain prices. Maybe their asking price is indicative of how much they owe on their home, their credit cards, cars, how much they need to pay their agent, closing costs, plus a little cushion. Maybe its based upon how much profit they want to turn since they made some improvements. Maybe they’ve got medical bills to pay off. Who knows? Like I said, there’s a million and one reasons.
Rarely do you find a home that is priced right on the money. And oftentimes you’ll see homes intentionally underpriced by $100K or more, just to create a buzz and have the market bid it up.
In any case, here’s a story about a cute home close to the Palace of Fine Arts. 3271 Baker was purchased in November 2006 for $1,700,000, just a smidge above the asking price of $1,695,000. It had only been on the market for 37 days. The buyer clearly made some nice improvements during their ownership. New kitchen, new bath, and really cleaned up the property.
Less than two years later, 3271 Baker came back on the market. It was listed on July 3, 2008 with one of San Francisco’s best and most respected agents. The list price was