Real Estate Model Is Broken – Property Virgins

[LookingforAnswers]

Somebody please help me understand this: I watched an episode of Property Virgins and was shocked at the process. The For sale price was $549k. The buyers agent proceeded to tell the prospective buyers that the MULTIPLE bids would be over $600k and then urged them to submit their VERY best and highest offer. The couple offered their very maximum of $639k and waited while the agent went across the street to present the offer. She came back 1 hour later and told them there were 3 offers but this couple won. ?????? Really? That’s how a willing buyer and willing seller meet in the middle at a price that satisfies both parties? A buyer and a seller with black box reps in between them urging people to offer their top dollar into a vaccuum?

The idea that Real Estate and this process has not been disintermediated is amazing and a testament to how hard the Industry has fought change. Those people may have paid $50k too much. Or 90k or 10k. But because of a completely backward and buyer-unfriendly model, tough luck. This industry will be made more efficient at some point and I hope all of the people that fought transparency and efficiency and open information and access get whats coming to them.

[jpinpb]

How sustainable is all this? I implore you. Is all this normal and does it make sense? Is this how it’s going to be from now on? Multiple bids on the way up AND on the way down? While unemployment rises? I’m very confused.

[jpinpb]

How sustainable is all this? I implore you. Is all this normal and does it make sense? Is this how it’s going to be from now on? Multiple bids on the way up AND on the way down? While unemployment rises? I’m very confused.

[jpinpb]

How sustainable is all this? I implore you. Is all this normal and does it make sense? Is this how it’s going to be from now on? Multiple bids on the way up AND on the way down? While unemployment rises? I’m very confused.

[jpinpb]

How sustainable is all this? I implore you. Is all this normal and does it make sense? Is this how it’s going to be from now on? Multiple bids on the way up AND on the way down? While unemployment rises? I’m very confused.

[jpinpb]

How sustainable is all this? I implore you. Is all this normal and does it make sense? Is this how it’s going to be from now on? Multiple bids on the way up AND on the way down? While unemployment rises? I’m very confused.

[mike92104]

It’s idiots that can not understand the value of things beyond “I can afford $X per month”

[mike92104]

It’s idiots that can not understand the value of things beyond “I can afford $X per month”

[mike92104]

It’s idiots that can not understand the value of things beyond “I can afford $X per month”

[mike92104]

It’s idiots that can not understand the value of things beyond “I can afford $X per month”

[mike92104]

It’s idiots that can not understand the value of things beyond “I can afford $X per month”

[salo_t]

But unless they are paying cash, the house still has to appraise at that ridiculous price. They may get a better deal when the appraisal comes in much lower. Maybe they were using their heads after all?

[salo_t]

But unless they are paying cash, the house still has to appraise at that ridiculous price. They may get a better deal when the appraisal comes in much lower. Maybe they were using their heads after all?

[salo_t]

But unless they are paying cash, the house still has to appraise at that ridiculous price. They may get a better deal when the appraisal comes in much lower. Maybe they were using their heads after all?

[salo_t]

But unless they are paying cash, the house still has to appraise at that ridiculous price. They may get a better deal when the appraisal comes in much lower. Maybe they were using their heads after all?

[Author]

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