Help Me Understand. What is the logic behind a large asking price spread?

[Coronita]

I've been looking at a lot of homes for sales in CV just for kicks. Even in this market, I still see most homes being listed with a large spread.

I mean for example, take a look at this 2800sqft home.

http://sandiego.houserebate.com/search/homeview.asp?id=1673677&p3=-1&ix=159

 

From $999,000 to $1,249,876. That's a $250,000 spread. Two hundred and fifty thousand dollars. That's about a 25% from the lower end. Do they really think someone is going to come in and offer $1249876? You can almost buy another attached home in some areas with that spread. 

 

Here's a $300,000 spread. Yes, three hundred thousand dollar.

http://sandiego.houserebate.com/search/homeview.asp?id=1685030&p3=-1&ix=215

Note the comment:

Seller will entertain offers from $1.5M & $1.8M~LOCATED AT THE HIGHEST POINT OF THE DEL MAR MESA THIS EXCLUSIVE GATED COMMUNITY IS SURROUNDED BY OPEN SPACE~LIMITED TO ONLY 32 CUSTOM HOMES WITH COASTAL BREEZES~OWNER HAS PLANS FOR A SINGLE LEVEL HOME W/6500SQ. FT./ENTRY COURTYARD W/PRIVATE GUEST QUARTERS

This home isn't even built yet. $300000 spread?

 

Unrelated note. It appears that in CV I'm noticing a lot more "land" being sold in MLS, primarily in the Preserves,  Del Mar Mesa. Guess developers and property developers are calling it quits for now. Still expensive…But so much for the arguments of "land being in short supply".

http://sandiego.houserebate.com/search/homeview.asp?id=1685548&p3=-1&ix=152

http://sandiego.houserebate.com/search/homeview.asp?id=1618383&p3=-1&ix=196

http://sandiego.houserebate.com/search/homeview.asp?id=1682610&p3=-1&ix=179

http://sandiego.houserebate.com/search/homeview.asp?id=1676367&p3=-1&ix=180

http://sandiego.houserebate.com/search/homeview.asp?id=1678392&p3=-1&ix=183

http://sandiego.houserebate.com/search/homeview.asp?id=1675948&p3=-1&ix=189

 

Ah…Land…Custom built home…Ah…."If I only had waited"…..  

 

 

[kev374]

ask any realtor. Price spreads NEVER work. The buyer usually gets comfortable with the low end of your spread and anything more and they feel like they are overpaying. Most sellers are expecting the median of the spread whereas the buyer is expecting to pay at the most 5-10% over the low end.

[(former)FormerSanDiegan]

ask any realtor. Price spreads NEVER work.

Never ?

WRONG.

It depends on the market. I sold in 2005. Advertised at price range of 780-840K. Sold for 820K in 20 days.

There was nothing else on the market in the area between 650 and 900K, so we really didn’t know what the market might bear.

[ibjames]

I think it’s stupid. Why have it listed at a price you wouldn’t sell at? My wife and I would put offers (before we started doing our research) and they would act offended that we came in that low. WTF?

[gn]

It’s a gimmick designed to make buyers think they got a good deal.

For example: $1 mil. – $1.2 mil.

In this case, the seller probably would be happy to get an offer at $1 mil. And the buyer might think: “I got a good deal, the seller reduced it by $200k.”

[ibjames]

Actually I think it’s to get it listed in more searches. So if I have a 400k max, and do a search.. people with houses with a 400-550 range get listed. They are hoping to get 475 and seeing if they can get me to overextend myself and swing it.

Though I don’t think that can happen as much as in the past due to changes in lending guidelines. So it probably is much less effective these day.

[ibjames]

Actually I think it’s to get it listed in more searches. So if I have a 400k max, and do a search.. people with houses with a 400-550 range get listed. They are hoping to get 475 and seeing if they can get me to overextend myself and swing it.

Though I don’t think that can happen as much as in the past due to changes in lending guidelines. So it probably is much less effective these day.

[ibjames]

Actually I think it’s to get it listed in more searches. So if I have a 400k max, and do a search.. people with houses with a 400-550 range get listed. They are hoping to get 475 and seeing if they can get me to overextend myself and swing it.

Though I don’t think that can happen as much as in the past due to changes in lending guidelines. So it probably is much less effective these day.

[ibjames]

Actually I think it’s to get it listed in more searches. So if I have a 400k max, and do a search.. people with houses with a 400-550 range get listed. They are hoping to get 475 and seeing if they can get me to overextend myself and swing it.

Though I don’t think that can happen as much as in the past due to changes in lending guidelines. So it probably is much less effective these day.

[ibjames]

Actually I think it’s to get it listed in more searches. So if I have a 400k max, and do a search.. people with houses with a 400-550 range get listed. They are hoping to get 475 and seeing if they can get me to overextend myself and swing it.

Though I don’t think that can happen as much as in the past due to changes in lending guidelines. So it probably is much less effective these day.

[gn]

It’s a gimmick designed to make buyers think they got a good deal.

For example: $1 mil. – $1.2 mil.

In this case, the seller probably would be happy to get an offer at $1 mil. And the buyer might think: “I got a good deal, the seller reduced it by $200k.”

[gn]

It’s a gimmick designed to make buyers think they got a good deal.

For example: $1 mil. – $1.2 mil.

In this case, the seller probably would be happy to get an offer at $1 mil. And the buyer might think: “I got a good deal, the seller reduced it by $200k.”

[gn]

It’s a gimmick designed to make buyers think they got a good deal.

For example: $1 mil. – $1.2 mil.

In this case, the seller probably would be happy to get an offer at $1 mil. And the buyer might think: “I got a good deal, the seller reduced it by $200k.”

[gn]

It’s a gimmick designed to make buyers think they got a good deal.

For example: $1 mil. – $1.2 mil.

In this case, the seller probably would be happy to get an offer at $1 mil. And the buyer might think: “I got a good deal, the seller reduced it by $200k.”

[ibjames]

I think it’s stupid. Why have it listed at a price you wouldn’t sell at? My wife and I would put offers (before we started doing our research) and they would act offended that we came in that low. WTF?

[ibjames]

I think it’s stupid. Why have it listed at a price you wouldn’t sell at? My wife and I would put offers (before we started doing our research) and they would act offended that we came in that low. WTF?

[ibjames]

I think it’s stupid. Why have it listed at a price you wouldn’t sell at? My wife and I would put offers (before we started doing our research) and they would act offended that we came in that low. WTF?

[ibjames]

I think it’s stupid. Why have it listed at a price you wouldn’t sell at? My wife and I would put offers (before we started doing our research) and they would act offended that we came in that low. WTF?

[(former)FormerSanDiegan]

ask any realtor. Price spreads NEVER work.

Never ?

WRONG.

It depends on the market. I sold in 2005. Advertised at price range of 780-840K. Sold for 820K in 20 days.

There was nothing else on the market in the area between 650 and 900K, so we really didn’t know what the market might bear.

[(former)FormerSanDiegan]

ask any realtor. Price spreads NEVER work.

Never ?

WRONG.

It depends on the market. I sold in 2005. Advertised at price range of 780-840K. Sold for 820K in 20 days.

There was nothing else on the market in the area between 650 and 900K, so we really didn’t know what the market might bear.

[(former)FormerSanDiegan]

ask any realtor. Price spreads NEVER work.

Never ?

WRONG.

It depends on the market. I sold in 2005. Advertised at price range of 780-840K. Sold for 820K in 20 days.

There was nothing else on the market in the area between 650 and 900K, so we really didn’t know what the market might bear.

[(former)FormerSanDiegan]

ask any realtor. Price spreads NEVER work.

Never ?

WRONG.

It depends on the market. I sold in 2005. Advertised at price range of 780-840K. Sold for 820K in 20 days.

There was nothing else on the market in the area between 650 and 900K, so we really didn’t know what the market might bear.

[kev374]

ask any realtor. Price spreads NEVER work. The buyer usually gets comfortable with the low end of your spread and anything more and they feel like they are overpaying. Most sellers are expecting the median of the spread whereas the buyer is expecting to pay at the most 5-10% over the low end.

[kev374]

ask any realtor. Price spreads NEVER work. The buyer usually gets comfortable with the low end of your spread and anything more and they feel like they are overpaying. Most sellers are expecting the median of the spread whereas the buyer is expecting to pay at the most 5-10% over the low end.

[kev374]

ask any realtor. Price spreads NEVER work. The buyer usually gets comfortable with the low end of your spread and anything more and they feel like they are overpaying. Most sellers are expecting the median of the spread whereas the buyer is expecting to pay at the most 5-10% over the low end.

[kev374]

ask any realtor. Price spreads NEVER work. The buyer usually gets comfortable with the low end of your spread and anything more and they feel like they are overpaying. Most sellers are expecting the median of the spread whereas the buyer is expecting to pay at the most 5-10% over the low end.

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