I have a question on house pricing. Does anyone know if this is a common situation?

Realtor sells about 50-80 houses a year and is a big player in the industry.

Comes in and tells us what he/she would sell it as. Price seems to be very low compared to houses around us. his/her sale time average is 7-14 days.

Is setting the price low to plow through inventory a tactic that some realtors use?

SKJ

Well...if a house is under market, it should sell faster. Length of days on market is directly related to whether the home is above, at, or below market. Condition and terms are also factored. If she can convince people to sell for less, I can see how they can get an offer in 2 weeks versus 2 months.

As long as she's being open with them about true market value, I guess she's doing a good job.

I agree, as long as they are being honest about the true value of your home it is ok. However, don't set your price too low just to get it sold quick.

KJ,
Just a question but how do you know what the houses around you sold for and if they are comparable to your house? If you are basing the neighbors sales price on what they told you I will tell you that your neighbors often lie!
Agents that do 50-80 transactions a year do not usually under price homes.

You might want to interview 1 or 2 other agents and see what they say the market value is. Another thing to consider is what the average days on the market is in your neighborhood. If this agent's average days on the market is 7-14 and the neighborhood average is 90, they may be pricing a bit low. Each situation is different. Some sellers are willing to price their homes lower to sell very quickly while others are willing to wait in order to get top dollar. Of course there are some that are in between. Good luck.

I agree with Paul--agents who are very successful don't get this way by "tactics" and underpricing. Real estate is a business of referrals. If you are not doing your job well, you sure as heck will not be successful.

It's a tough pill for many sellers to swallow, but pricing your house as competitively as possible (to you that may translate as "low" ?) actually brings MORE MONEY. Your best buyers are generally the first groups through--they've been looking, WANT to buy a house, and are ready! When they look at your properly priced house next to those that have a 10% or more "cushion" for negotiation--guess what happens? Yours shines above the rest, buyers see the value and know they need to act quickly or they will lose out. This "tactic", in fact, can bring you a price beyond the average selling price because you may generate competitive offers.

Good Luck!