It always amazes me that when a home is priced aggressively right out of the gate and looks even half decent -- not Martha Stweart but nice -- that multiple offers start ot come in almost immediately.

My clients who own the townhouse in this post in gorgeous and historic Laurel, MD had lived in it for 28 years.  It wasn't paid off because they had refinanced to get some cash out at one point but they had plenty of equity and it was in no way, shape or form anywhere near short sale or foreclosure status.  It was a plain vanilla, regular-regular sale.

They had moved out and they want to sell the house.  Sure.  They would like to get as much as they could but their main motivation was to sell the house.

So, they had made some home improvements and priced the home aggressively.  Lo and behold!  Multiple offers started coming in by Day 2. Some were the  "This is a Buyer's Market and I'm going to low ball the Seller." type offers but one came in that it showed the Buyer obviously wanted to buy a house and this was the one.

This is the second home in the past six months (for which I have been the listing agent) that has received multiple offers within the first week the home was on the market

  • in the worst real estate market known to mankind and
  • mortgages going only to those who can afford to re-pay them.

This only reinforces, confirms, corroborates and verifies the guiding truth in all real estate sales -- if you want to sell your house you have to price it correctly for the market and it has to be in good condition.

"Let's try higher, just to see." "We can always come down."  "I'm not giving my house away."

Those are all great --- only if you don't care if your house sells or not.

 

9 Comments on Priced Right + Good Condition = Multiple Offers

AUG
14
2008
278,334 Points 6 Featured Posts Outside Blog

Ken, you are right on the mark.
8:57am • #1
286,657 Points 12 Featured Posts Called Shot Master

Congrats Ken! 
9:01am • #2
306,275 Points 3 Featured Posts Outside Blog Hit Router Called Shot Master

Ken, it's it great when we have sellers who get it!  And they listen to us!  Congratulations on the sale.
9:10am • #3
128,993 Points 3 Featured Posts

Great point Ken.  I am always amazed at how quick our listings sell when we price them aggressively.  Thanks for the reaffirmation of a belief I have always had.
9:26am • #4
1 Featured Post

I definitely agree.  However, our investment real estate company has been noticing some interesting market psychology on our projects in the Phoenix, AZ metro area.

We've been working on light rehab projects on homes that we have purchased at the public auctions.  We are pricing the homes (renovated, move-in ready) to rival the pricing of foreclosures and short-sales in the neighborhood.  How could we go wrong being priced this aggressively? 

The answer, it seems like there is a large number of buyers (with or without representation) that don't know true market value, not realizing that we are already priced, on average, 10% below market value.  In locales where true comped homes have higher days on the market, we hypothesize that we would be better off pricing our homes at fair market value, if we don't sell it within two-three weeks (which we probably wouldn't), drop the price a steep 5-8% and then allow the buyers who come to the table to negotiate a further price reduction to make the sale, credit closing costs, etc.

It's become quite evident that people want to "feel" like they are negotiating and getting a better deal.  Conversely, in strong neighborhoods, with strong demand (areas like Scottsdale, AZ) the exact opposite is occurring.  Price aggressively, below market value and, when we've done it right, we receive multiple offers!

It never ceases to amaze me how much market psychology plays into this business!
9:34am • #5
144,192 Points 7 Featured Posts Localism Sponsor

Roger -- Yes, indeed.  Why Startegy A works in one area and not in another is odd and befuddling.

Justin -- Everytime I get Seller buy-in to price aggressively and present their home in decent condition, it sells! The challenge is getting more Sellers to believe that.  Coming from me - a greedy Realtor who just wants to to sell quickly to make a big commission - it doesn't always have good credibility even if I show them reams and reams of comps and stats.

Lori -- Indeed it is!

Barb and David - Thanks!

 
10:59pm • #6
AUG
15
2008
Localism Sponsor

Ken - That is great news, I am glad that it worked out in both cases for you.  You're doing your job to educate the sellers, and in return it is paying off for both of you quick!  I've always been a believer that if our clients just "trust" us out the gate, then we can get results quick.  Congrats.

Stan Barsch
12:38pm • #7
AUG
18
2008
207,923 Points 2 Featured Posts Outside Blog

90% is pricing right. the other 10% ?? pricing right
12:28am • #8
SEP
05
2008
196,785 Points

This has been the case every time my clients go looking for a home.
2:18pm • #9


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