I am really bad at noticing TV commercials. I could be looking straight at the TV during the commercial break and fail to recall a single one. But last week, one happened to catch my attention.
While browsing through TV channels, I stopped at a commercial for one of the dot-com real estate companies. Now, my feelings about the internet-based real estate services are the same as for Amazon.com vs. Brick and Mortar Bookstores -- I love, and shop at them both!
Basically, I do not dislike real estate companies just because they're dot-com.
This specific commercial, however, left me unable to reconcile the client-statement, claiming to sell a house at 55K above the asking price, thanks to the amazing skills of that one real estate agent associated with that dot-com.
Honestly, I still keep asking myself:
How is that possible?
What had to happen for this to be possible?
It's not uncommon for a seller to want listing their house at above the (local) market price, but as real estate agents, we provide them with market analysis supporting our price recommendation, and reminding them about the home appraisal process.
(If you're looking to mortgage your future home, the bank will send an appraiser to validate the price before they will issue funding.)
So, for the 55K above the asking price transaction, the buyers must have had either enough funding of their own OR the house really did appraise for the +55K.
And if the house really did appraise for the 55K above the asking price, wouldn't that indicated that this specific property was listed at below market price? If that's the case, how can the dot-com agent claim credit for selling it at "above" the asked amount?
There are no processes/rules stating that if you do this and that, the house will sell at above the market value.
In the end, it is the market that will dictate the price. Anything other, is an exception which would leave the agent (of that advertised deal) as surprised as anyone else.