The untold truth about the "over asking" price

I'm so sick of seeing "SOLD 200k over asking in 5 days!" Anybody with me? It's just a boastful attitude of Agents and Brokerages that are broadcasting illusions. Here is an example of what I mean:

A house is listed for 600k when its true market value is 700k. Sellers are "holding offers for 5 days" so that buyers have a fair chance at competing on a home given our extremely low supply to demand. On the 5th day, offers are reviewed, usually in multiples. OBVIOUSLY it will be sold in 5 days, and chances are extremely probable that it will go over ask. The trends are that offers are going 100s of thousands of dollars over asking price right now, and by already starting the price significantly underpriced inflates the "success" of the sale for the selling Agent. Super frustrating and gives a very skewed projection of the current market to buyers. This is one of the reasons I mentioned in a previous post, that it is really important that your Agent knows the market, the neighbourhoods and the trends of both list and sold prices. They may not make sense - so understand why!

Being in an already really crazy, misunderstood and frustrating market, the very last thing we should be doing is boasting about it. Sure, most of us work really hard for our clients. We get the houses looking amazing, staged and show ready, but we should be doing this for our clients, not for the publicity!

In 2020, we saw many underpriced homes receiving tens of multiple offers, driving the fury over over asking price sales. Record low mortgage rates combined with the pandemic having people seeking more spacious living situations have driven our housing market into even more madness. My point is that a lot of the prices are driven by outside factors, out of the hands of the listing agent.

So, when you see "SOLD OVER ASKING IN _ DAYS" - call BS, keep fighting the fight and don't let it get you down! If you need a hand, let's get started together.