A ‘stupid system’: California homebuyers frustrated by rampant underpricing in real estate listings

A ‘stupid system’: California homebuyers frustrated by rampant underpricing in real estate listings

Rajul Jain and Vivek Shivhare had been home searching for a few months when they found the perfect place in the hills above San Jose — a three-bedroom, three-bathroom ranch that would provide enough room for them and their teenager daughter. It was listed for $1.68 million — within their initial $1.8 million budget. They put in an offer $70,000 over asking, hoping it would be enough to acquire the house. Instead, they encountered a familiar Bay …

A ‘stupid system’: Bay Area homebuyers frustrated by rampant underpricing in real estate listings

Here in the Bay Area, prices have little meaning. Rather than signaling what a seller hopes to get, they function as the opening bid at an auction, agents and buyers say.