Is Listing Low the New Strategy?

November 5, 2012
It has been interesting of late to track new listings, particularly those listed as short sales. The list prices seem to be less that the price of similar properties that have sold. As soon as these properties are published in the Multiple Listing Service, there is a flurry of activity. A constant stream of potential buyers and their agents tour the property and often write offers. Since the agents and prospective buyers are aware that there may me multiple offers, they write offers that are over the listed price. The listing agent and the seller usually let it be known that they will be looking at offers a few days after the property goes on the market. I know of at least one instance in which the seller received twenty-four offers.
Is this a new way to have buyers and sellers determine the market value of a property? Will appraisers takae into consideration the fact that the accepted selling price was the result of multiple offers? Will the short sale lender be willing to approve a price that may exceed the current comparables?
We are clearly in a transitional market. It will be interesting to track how these multiple offer properties affect the prices.