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Updated about 7 years ago on . Most recent reply

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Byron W.
  • Chicago, IL
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77
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Delisting / relisting with a dropped price. Bad practice?

Byron W.
  • Chicago, IL
Posted

I'm currently in search of my first multi-family live-in property. And I've noticed something that was odd at first. Some properties have been listing for say... $500k and after a month or so of no offers, they'll delist the property and re-list it for $470. So that the previous $500k price never shows as the original price. This means that if/when they sell for $470 (or close to that) the MLS will show a really high percentage of sell to asking price in that area.

I noticed something was weird when my realtor said that this particular neighborhood in Chicago had a 97% sell price to asking price. This got me to doing the research and this is what I found/realized after some time. Is this standard practice elsewhere? (I'm in Chicago). It just seemed really unethical to me, but I am a rookie at this so I don't know if this is the norm or not? 

Most Popular Reply

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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
13,509
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23,418
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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
Replied

It’s not unethical or intended to fudge the listing percent sold numbers......it’s just that a property presents better psychologically if it shows as “$470k, on the market for 2 weeks” as opposed to “$470k, reduced from $500k, been on market for 8 weeks”.

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