Is There A Risk To "Over Pricing By Under Pricing"?
This is a good post to review. There is danger in underpricing and in overpricing. The mention of games is interesting. I frequently see Buyers steer clear of too many contenders for a home. It is easier to fall in love with one that does not start with a problem...as in paying too much to get it with the intense competition.
With properties listed considerably below comps – and those that get numerous showings the first day on market, Buyers tend to ask several questions such as:
Why is it priced so low – what’s wrong with it?
Do you think we should offer more than the ask price?
What happens if we end up in a bidding war?
First, I hope the list price wasn’t used as a way to generate multiple offer situations – “overpricing by under-pricing” to manipulate a desired outcome.
To help answer buyer questions:
Why is it priced so low - what's wrong with it? Who knows – let’s go take a look, if you love it, and want to make an offer, do it, and if accepted, a home inspection will uncover if there is anything wrong with it.
Do you think we should offer more than the ask price? No. Let’s never forget – this was the problem years ago!
What happens if we end up in a bidding war? You have two choices: participate in it – or not.
My Buyer did not participate. He bought another home - no games, no manipulations. Unfortunately for the seller on our first offer, who had five offers and countered with “give me your highest and best” – his home is still on the market because all five Buyers “walked”.
Food for thought for sellers - when I have a client who writes an offer – it typically IS their highest and their best. Serious Buyers write serious, strong offers and serious Buyers don’t like games. If you are lucky enough to get several offers - pick the strongest best one - and keep the rest for back up.
Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com .
This blog is written with my opinions and my opinions are presented with
accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions. Gabrielle Kamahele Rhind - 2014. If you want to reprint parts of this - just email me for my permission: KGCProperties@gmail.com .
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