re: What I'd do different next time: A real estate agent/transaction story/rant

Generally the sellers big mistake is not getting a certified appraisal done before hiring an agent and the buyers big mistake is not getting a survey prior to purchase.

Real estate agents will give you their opinion of market price after looking at your property for 15 minutes. Many if not most agents are not appraisers. Their opinion of value is often based on getting an offer showing the house for a minimum # of times.

Agents also give opinions on locations of property lines which are based on here say and quite often wrong by a large margin.

After 30 years of appraising and surveying property and the hundreds of stories "that's not what the agent told me" gives me a little extra incite, but of course that is just in my immediate area.

In my area, agents give their opinions of property values and locations of property lines all the time when they aren't qualified, certified or licensed to do so.

The next point is you are dealing with professional services and the lowest price may not be the best value. Do you pick a doctor or lawyer based upon the lowest price?

I hope this is just a local problem and not state wide.

It isn't negotiating against yourself.

Not to mention if you were actually looking to buy a house, you also looked at those "other houses" and decided to put in an offer on the OPs. You, or more importantly your wife, want the house you put an offer on. You aren't going to walk away, you just might not increase your bid or make any additional concessions. And the OP still has the other potential buyer that also liked his house enough to put in an offer.

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After 30 years of appraising and surveying property

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No disrespect, but an appraisal is not that difficult to do. You take comparable homes in the neighborhood that previously sold and determine what they sold per square feet, and then compare that to the House X. Its not rocket science, its not like an experienced or even inexperienced realtor can't do the same and get extremely close in 15 minutes. An appraisal is just done officially for legal and business use.

Banks sell foreclosures often with this method:
1.) Under price unit for sale
2.) Set date that any offers have to be in by (i.e. 21 days after initial MLS entry)
3.) If multiple offers, give all offers 3 or 7 days to submit best and highest.

That's a great way to do it. Its proven that pricing low and then getting a bidding war can often get a higher price than pricing high and then getting low bids. People get excited and use their emotions in what should be an emotionless transaction. You also get potential buyers that otherwise may have been "priced out". Smart buyers set a firm price range, so instead of setting a house at $185k and hoping for $180k that a buyer that has a limit of $175k may not even look at, you under price at $175k and then suck those buyers in with a bidding war.

The key, is to give people time. No way in hell you should accept an offer within 7 days of being on the MLS. Delay it, I've bought properties where the seller was "in europe" or "on vacation" for 10-14 days. Use a BS excuse or don't, but give the property at least 2 weeks on the market if not 3. Then, after 14-21 days tell anyone that submitted an offer to resubmit their best and final because its a multiple offer situation.

Its the absolute best way to try and get your best price. Its not perfect, no method is.