No one ever puts their home up for sale hoping for an average offer. They want a Great Offer, even a “bidding war”so that will push their home’s price well over the asking price. It doesn’t necessarily boil down to luck, timing, or even location, location, location.
The best strategy I’ve seen is to aggressively price the property about 5% to 10% below the going market rate. This will always generate more traffic to the property and give buyers a chance to fall in love with the home, when a higher price might have kept them away. Not only does it get more people in, but once the buyers see the place, they’re more likely to make an offer. While pricing your home a bit below what it’s worth may seem counterproductive, sellers who take this leap of faith are often rewarded. After all, a bidding war is a surefire way to push your home’s price over asking and you can’t have a bidding war without multiple buyers. So price your home conservatively to up the odds that it will sell for more.
I also suggest that you don’t leap at the first offer. Several years ago I listed a 3 bedroom home at a fair price, it received 4 offers almost immediately. But instead of accepting right away, we held back and considered it as a launch pad for cultivating some fierce competition that could ultimately boost the home’s price. We notified the buyer there were other offers, and used that position to gain an advantage. In the end we had 2 offers well above asking price.
One time I was selling a small apartment that needed a gut renovations” and I received a low-ball offer from a buyer who was very stubborn and didn’t want to budge on the price. I knew I had to get another offer to create competition, so I showed the property to an Investor, I presented him with a floor plan and pictures of another unit in the building to prove this one could be remodeled and rented for a high price. The Investor made an offer, but I wasn’t done. I went back to the original low-ball buyer and used the second offer to create a bidding war. Finally, the apartment sold to the original buyer for over asking price and all cash. Investors may not be the first people you think of selling to, but they’re always shopping for a good deal and they can provide that much needed incentive for other buyers to come up with more cash.
I had one home in a neighborhood with sluggish sales. So to make it stand out, the seller needed to make some updates. We know that money for renovations will eat away at the sellers profit. But it could also be a way to help the home shine and standout in a sluggish market and get more money than he would have otherwise. Just make sure to pick renovations that offer a high return on investment. Although I listed it at a modest $150,000. as soon as it hit the market, I got offers. By the weekend, we have had a bidding war and we ended up getting an offer for $165,000. The seller was very happy and so was I.
I once listed a home for a pastor and it was quite an experience. As an extra selling point I announced that the home was a pastor’s home and he was moving on to another parish. It might have been divine intervention but I had people walk through and say they could feel the spirit of God in the house. By the end of Open House weekend, I had 20 offers, many waiving inspection contingencies. The seller (pastor) studied each person’s situation, then prayed about it, and selected the offer that felt right. So it never hurts to highlight any unique features of a home or it’s owners as this extra selling point could just push those offers over the top!
Thanks for reading this and if you or anyone you know is in need of real estate advice, please do not hesitate to contact me.
Donna Bishop Realtor call me; (239) 560-3149 or email me; firstname.lastname@example.org