A Pricing Trick You Can Use to Increase Bidding

By
Real Estate Sales Representative with DIR-USA.com

We Buy Houses - Bloomington MN: If you have a little time and are willing to take a bit of a chance on selling your house, try the low pricing trick. It’s more of a strategy than an actual trick, though. The word trick suggests that you are somehow deceiving someone. This is not the case. You are merely pricing the house low to encourage more attention. With more attention there are more likely buyers for it.

A Pricing Trick You Can Use to Increase BiddingPutting a lower than expected price on your house will start something in motion that could be quite exciting as you watch it unfold. It’s somewhat like watching something of great value on Ebay start out with a pricetag of under a dollar. You can watch the bidding war take off and go absolutely crazy. The item that might have sold for $50 if you had listed that as the price is now being sold for $75 and still climbing. This is the same concept you can use to price your house. What you will do is spark a bidding war on the house.

Since more than one buyer at a time can place an offer on your house, you can expect to see more than one buyer attempting to give you the most money for it. You’ll receive offers for the asking price, then you should get more offers and they will inevitably be for more money. Let’s say you think the house is worth about $95k in today’s market. If you list it at $93k you might get lookers who are interested. If you list it for $85k though, or even $80k you might find that you have many people that want to come and look at it. Then you’ll start receiving offers from different people engaging in a bidding war that began with the super low price that.

Smart buyers recognized that the price you had on it was way too low to be anything but a great deal. Once they are caught up in the competition they may end up paying more than they had planned and you might end up with what you thought you wanted for it in the first place. Bidding wars are very psychological and the sellers who are brave enough to tempt buyers with it often come out on top of the heap. In other words, by creating an almost frenzied interest in the house, you stimulate bids. Beware, though, that it could end up going in the other direction and some lucky buyer gets it for $80K.

 

We Buy Houses Twin Cities, MinnesotaThere are many possible reasons why you may have a house that won’t sell or can’t sell. Whatever your situation, foreclosure, vacant house, expired listing, behind on payments, divorce, bad tenants, etc., at Select Advantage Properties we create and provide fast win-win real estate solutions for all our customers. We are a local company with the ability to BUY, REPAIR, MARKET and SELL HOMES. We also buy houses that are not distressed.

Please complete our online questionnaire to sell your house now or visit our website for more information.

 

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Comments (2)

Chad Ronning
Guaranteed Rate Mortgage - Maple Grove, MN
Conventional, FHA, VA, USDA

Great technique, it always seems like the houses that are the best deals get the most action and the price gets bid way up!

Oct 23, 2011 11:39 AM
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl.

I have been telling the folks this for years thanks for affirming it for me.

Oct 26, 2011 11:39 PM