Overpriced ‘Pinball’ Houses Bounce Buyers Over to Cheaper Properties

With signs that the economy is climbing out of recession and home sales are on the rise, some sellers refuse to listen to their agents and insist on pricing their properties too high. In some instances, these homes are considered “pinball” properties, which real estate agents do not expect to sell without significant price reductions. Some actually use pinball homes to facilitate sales of lower-priced, comparable dwellings. On Active Rain, Joe Manausa of Century 21 First Realty in Tallahassee, Fla., wrote, “If two very similar homes are near each other, with one priced at $250,000, and the other at $280,000, the higher-priced home is often shown first. Then the real estate agent says, ‘If you like this home at $280,000, you are going to love the home down the street at $250,000!'” However, Manausa stresses that real estate agents should not list a property at an unrealistic asking price because it amounts to misleading the seller. Some agents say they should require sellers who refuse to budge on price to compromise by signing an agreement allowing an automatic price reduction if the home sits unsold for a few weeks. | Read More