Why so many price reductions lately?

99 Price reductions today in Red, 441 new listings in Turquoise.
Presently most properties are selling and appraising around $40,000 above the most recent comparable sales going back to November/December 2020. With the right buyer sometimes $60,000! No agent can really peg the market on what any house will actually sell for right now, making pricing property extremely difficult. It is just crazy! It is always best to list a property a little under where you feel the market is presently and then let the bidding war begin, subject always to the appraisal and if any buyer is willing to offer appraisal insurance, paying above the appraised value out of pocket then Bingo! The seller’s really win!
But, listing agents need to GET THAT LISTING! So they overpromise to get the sellers to sign the listing agreement, that has no cancellation clause by the way, and then let the reality of the market condition the sellers. This of course is a fraudulent practice that happens every day in real estate, but it works! Sellers are sometimes a bit greedy and want the most they can get so they fall pray to the unscrupulous agent willing to tell a few fibs to get that listing.
Sadly, in real estate sales, agents that are honest and upfront are usually poorly rewarded. Seller’s think that if they shop agents they will get just the right one that will get them the most for their property! Now some agents know how to price property just right to help entice bidding and they are good at valuing property, like myself, but it is usually the agents with the “best” sales personalities and with a good spiel promising the highest sales price that gets the listing most of the time.
That is why you see a high rate of price reductions lately because of these agents overpromising causing them to under deliver, but “what the heck,” they got the listing and the sellers are stuck. Honesty is not rewarded while dishonesty walks away with the commission check every time.
So, in real estate sales the system actually conditions agents to purposely fib and obfuscate if they wish to be very very “successful,” because sellers are conditioned to accept what they want to hear-I’ll win the jack pot! That is why the Real Estate Associations are constantly badgering agents with new rules and required ethics courses and those agents like myself who refuse to do fraudulent things to get that listing, unfortunalty suffer with less business.
I’d rather be known though as the agent/broker with impeccable integrity being truthful to all my clients, then the smarmy sales actor who wins by lying and cheating them- At least I sleep a lot better.
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