When pricing properties, some may tell you that it’s beneficial to underprice your home, condo or townhome in order to stimulate the offers – in order to having multiple bids.
Then taking those bids and pitting them against each other to raise the specific offering price.
Some of the “naysayers” think this strategy, on behalf of the real estate agent using this method, equates to having the home sell faster so they can get paid and move on. – Interesting thought 🙂 – I’m not a fan of this listing method for sure!
The problem with that tactic is that it has not been proven.
No study, no where, can conclude this to be an effective tactic in getting the seller of a home, condo or a townhome the best possible price.
In fact, we see the opposite when it comes to listing and selling real estate.
Opposite meaning it’s better to be at FMV or higher to get the seller better offers.
Even when the market is declining, we rely on the “staging” approach and the Real Estate Fit to Sell series to make the sellers home a “show piece”, focusing on the focal point of each listing we procure to sell.
We also have our “secured” listing presentation that gives a partial view of our Santa Clarita real estate sales presentation as we built them out on the online channels.
It’s hard to offer more than something is listed for. Even in a hot market, you are going to have people that are going to be at the listing price or lower.
You can always come down, but going up, that is a totally different story, even when it relates to approved short sales that have been approved at a “higher than original listing price”, those “second offers” are tough to get because of the “record” as it relates to the previously “Non Approved” listing price established by the real estate agent.
Make sure you are working with a professional when it comes to pricing, staging and selling your real estate. Make sure they are giving you the “truth” as it relates to buyer habits in the present market and can show you a clear and concise strategy when it comes to their approach to selling your home.
For further reading, make sure you check out our latest Santa Clarita Housing Market Report on our Realtor Blog.
You will find the PDF’s for each of the cities within the Santa Clarita Valley and our reports therein at the aforementioned REMAX Realtor Article.