It has been a while since I have had the opportunity to post a message here...why?...because regardless of all the negative media about the housing market in Toledo, Ohio and elsewhere...I HAVE BEEN BUSY. I hit upon a wonderful idea quite by accident that I would like to share. I was given a warm referral from a past business associate and feeling quite comfortable going into the listing appointment was already prepared for the typical seller speech of "my property is worth more" but was pleasantly surprised to meet a more than realistic seller who just wanted their property sold, and sold quickly. My first instinct was to sigh, thinking to myself, in a market where properties are having listing anniversaries this may be a bit challenging. However I quickly recovered from this "stinking thinking" and came up with the idea of listing the property for what it should sell for, instead of list for, with the typical offer, counter offer situation. By listing the property at its selling price would this not create a different thought pattern in the buyers mind? If they were looking at $90,000 properties and looked at my property listed at $84,900 would they not see the value already in comparison to the properties they had been viewing with $90,000 price tags? The seller agreed that it may be a bit risky trying it this way, but then again they didn't have to accept an offer unless it was what they were willing to accept...so we did it...listed the property for what it should sell for. Guess what? There were multiple offers. An acceptable offer, just a teensy bit less...something that the seller was comfortable with and in less than a couple of months. I must admit I was a bit surprised and still had my doubts that it may have been a lucky coincidence. As luck would have it, the next listing appointment I went on I used the same scenario with the seller. You probably won't believe this but that property sold in less than 5 days with multiple offers...over asking price. I may just have hit on something here! We are the experts in evaluating a properties worth are we not? So now I am confidently going on listing presentations and speaking turkey with the sellers...let's not think "list price", lets talk "selling price" and cut out the haggling. It is catching on with my sellers, they like the idea, it appears to be working...so I say...let's price 'em to sell, save our sellers the anquish of watching their properties sit, and save our months and months of advertising dollars for something fun...like retiring on a beach. Get your sellers excited about selling, get the property priced for the condition, get the money into your sellers pocket quickly, reduce their stress....you'll be a hero.
Connie - This is a technique that I use as an investor. In my case, I do it to move the property quickly. I haven't tried selling the concept to a client yet, because I still get lower offers on my investment properties. Maybe, I'll give it some more thought now.
Yup in a down market you need to list at the sale price. You can't catch an apple if your hand is above it.
Take care!
RJH
Connie, when we see a selling price home in our area we know that our buyers will likely be competing in a multiple offer situation. We see a lot of REO's priced this way.
I absolutely love the idea and it is what I have been reading about for a couple of years. I believe it works. The seller does not have to take a low-ball offer, after all, so they are actually losing nothing by trying. Sellers should be told that getting people in the door is the most important thing, and at a "selling" price, the buyers WILL come!
Gee, what a novel idea... List a home at the price you want to sell it for!
You don't go into Macy's and ask if they'll take $20 for a $30 dollar item, do you?
Connie - Very good strategy. It has worked fo me as well. I always ask that question . . . Do you want to be in real estate or do you want to sell real estate? Of as a fellow Realtor once said to me, "I've never seen an issue Price wouldn't cure."
HIConnie!
I have done the same thing with my last 3 listings (listing them slightly below market). All of them sold within one week. No multiple offers, but the sellers were aware of and agreed to our approach. My new mantra.."The best house at the best price."
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