I have had 6 emails over the past five days asking me about the pricing on a relatively new listing in San Carlos. The answer to all six emails has been a resounding “Yes, the house is tremendously underpriced, maybe by as much as 150-200K.” I cannot mention the house by its address or listing agent, but it is a very good example of what happens when you choose to work with an agent who does not specialize in San Carlos. Unless you live and breathe with our market on a daily basis it would be almost impossible to accurately price the home with our current market trends.
At first glance you may wonder what the harm may be with underpricing a house to gain multiple bids. The answer is, nothing, as long as you do not undercut the market value by so much that you do more harm than good. Many buyers who have been looking in San Carlos for some time will recognize the disparity with the price versus market value and view this listing with a certain amount of skepticism. The sellers may very well achieve a bid of 100K to 125K over asking, however, the question of whether the sellers left 25-75K on the table will remain unanswered. Agents that truly understand our current market know that they need only price the property at the fair market value. The sheer demand for San Carlos will make the offers stronger without having to resort to tactics such as underpricing the home. Whether this listing price was unintentional or intentional, the model goes to show that using an agent that really understands San Carlos, will, at the very least, give you a better shot at obtaining the most money for your home.