Agents raising list price on MLS just so they can lower it later?

[code7700_IHB]

I've seen a number of homes where it looks like agents are raising list price on MLS just so they can lower it later. My guess is they're doing this so they can show "reduced" in the future.



Do they really think people are the dumb? Even my next door neighbor (87 years old) knows how to work Redfin and scroll down to "Listing Price History".



A few examples:



http://www.redfin.com/CA/Lake-Forest/44-Tavella-Pl-92610/home/4798559went from $575,000 > $625,000 > $600,000.



http://www.redfin.com/CA/Mission-Viejo/25611-Minoa-Dr-92691/home/4840485went from $539,900 > $549,900.



http://www.redfin.com/CA/Aliso-Viejo/30-Sandbridge-92656/home/4857106went from $650,000 > $690,000.



On the last one, does $40K make that big of a difference? After all, they paid almost $1M for this place in 2005.

 

[PadreBrian_IHB]

We have seen this a million times. It helps sell the house....some of the time.

 

[freedomCM_IHB]

The only time I see this in the market I track, Costa Mesa, is when the houses make the transition from short sale to REO, or when a short sale listing gets "lender approval" for a price. I suspect the lender rejects the low offering price (say 450k) but says that they will accept a higher one (say 500k with lender approval).



Maybe the south county "real estate professionals" are just stupid?

 

[code7700_IHB]

Seems odd to me. Just saw another one today:



http://www.redfin.com/CA/Mission-Viejo/27171-Pueblonuevo-Dr-92691/home/5078697went from $649,900 > $670,000.



Last sold for $665,000 in March 2005. That might support your (freedomCM) logic.