Buying Then Selling a House After Eights Months Not a Winning Strategy

I wish I could say that I don’t come across this scenario very often, but I’d be lying.  Here is what I see, a buyer purchases a house in the spring and 8 months later it’s back up for sale at an inflated evaluation of 15% above the original selling price. Whether this idea comes from their realtor, the seller or both it is just idiotic.

Yeah, some Realtors are driven by their own selfish needs(greed) and will put out an overpriced listing.  What they are hoping is they will attract a like-minded realtor hoping to jettison their buyers into any house (regardless of price)  to get a commission cheque.

It is does not take a lot of sleuthing as I can pull up the previous listing and know exactly what it sold for.  In looking at both the present and previous listing I can see that you have done nothing which would warrant a 13% price escalation.   Putting the words extensive upgrades means you have actually put in those significant upgrades.   It does not mean that a couple of cans of paint and adding $1,400 in kitchen appliances makes the house worth more than it did 8 months ago.

Some real estate agents seem never to learn from their previous mistakes or their colleagues .  The previous listing of this house had an agent who had overpriced the home and after some 90+ days on market and numerous price reductions it sold for (you guessed it) 13% less than their first asking price. Now, you would think knowing the fate of the previous sale the new selling agent would want to avoid the same fate…but no.  This new listing agent believes they possess some magic beans or fairy dust which will bring them a buyer stupid enough to over pay for this house.

Do you believe in deja vu?  The new seller must have felt elated when they got the house and thinking “we just got the greatest deal”.    I can just see what their strategy was:

  • Put a little work into the house
  • Then re-list the home at an inflated price
  • Get a novice buyer with their dolt of an agent to over pay for the house
  • Then walk away with a pocket full of cash
  • Not bad for 8 months work

The strategy is flawed and unfortunately they only have their realtor and themselves to blame.  Just so you know I do have a couple who are interested in buying the house and we will be putting together an offer, but not based on your listing price but on the previous sold price earlier this year.   My clients are looking for a home  and whatever magic beans or fairy dust you have does not work in the world I live in.