I’m looking at a house and it’s listed with “VIP Pricing”. Googled it and it basically means the sellers set a base price, and offers must start at the listed price, and then the price is negotiated up.
Seems to me that it’s kind of a scam. Like maybe this seller is thinking “i want X amount of dollars for the house, so ill set this “VIP Pricing” so that i get exactly what i want.” So a buyer comes in, and CANT offer anything lower, so the house sells at the listed price, or higher. Seller wins, buyer losers.
Only thing you can do is get an agent, and have the agent do some research on the comparable sales in the neighborhood. They can search through the local MLS listings for past sales. Figure out what the house is worth. If the “VIP” price is high to begin with, just walk away. If the house is a good price, make an offer. Bottom line, do your research and negotiate a FAIR price.
Sounds like a good way to scare off lowballers. Friends of mine just sold a house and were surprised by how many people just wasted their time by doing a showing then offering WAY less than the asking price.
Could backfire on the seller if no one shows interest in their starting price though.
It is the “old auctions make more money” mentality. People see the low starting price, get excited and then that excitement turns into a competition. It is a way to get people to put in a bid that might normally passed because of sticker shock. Like board said, the bottom line is what is the house worth?
basically a bid war… they price it low to get interest and wait for the multiple bids to try and make money. I know the Larendi’s from the real estate company I used does that. They dont really negociate maybe because they want more in their pockets. Pissed me off when i was looked and seen a few I like but they were the listing agent. I refused to buy from them.
This happens in a good amrket anyway. I remember people in EA selling there homes for more than they were asking just because many people wanted the house. I doubt it is happening much now in the current market.
Yeah the house is definitely priced right at the VIP price however the house has been on the market for about 9 months now. The price has recently been dropped by 11% from the original asking price. I’m thinking i might as well just go in and offer what is listed. Just hate the fact that the seller has the upper hand here.
VIP pricing is BS. I’ve seen a lot of houses do this now, then 6 months later (after they dont sell) drop the price.
Its basically a scam to get a house they want more money for to show up in your search, when normally it wouldn’t. If you don’t think its worth that money, offer what you normal would. Just keep in mind that you may not get a response from them if its a good amount lower than their VIP asking price.
i doubt you’re going to get away under it unless it’s been listed forever (9 months is a long time). the housing market is moving so fast everyone i know was in bidding wars for their houses… so keep that in mind when you put your offer in.
Also if it is a bidding war you don’t get to place a second offer, if you miss it by a dollar you lose and it goes to someone else.
My realtor lady said that VIP pricing is a sham to try and rope people into thinking they are getting an awesome deal on what is otherwise a shit box home.
Well the good thing is, it’s a pretty new home and a house two doors down with similar features sold for 5k higher than the asking price on this house.
Yeah. So i suppose i might be overreacting a bit. I’d rather they just said "looking for $xxx FIRM, instead of VIP pricing… But i suppose homes are a whole different animal compared to buying a vehicle or somethign cheap. LOL
Different market, but I only paid a few thousand under asking price for mine. My parents bought one in October for asking price as well. Different market, but this is a great time of year to sell.