Should I List my home UNDER market value to inspire a BIDDING WAR?

By
Real Estate Broker/Owner with Godzyk Real Estate Services NH License 033394

Is a Bidding war what every home seller should inspire to have? More and more when i go out to interview to list a Manchester NH area home, the sellers tell me other agents want them to list low to inspire a bidding war. 

 

I always complete my own Free Market Analysis also known as a Broker Price Opinion or BPO on every home I want to list. Basically looking at the homes style, size, age, location, condition, upgrades while comparing them to what has sold in the last 6 months that is similar. I add and deduct for upgrades, condition and or differences.

 

My goal is to set a range of value. Such as your home is worth xxxx based on sold comps. You should ask xxx price, we can count on offers in this range and most probable sales price is xxxx. The dirty little secret is you do not need a biding war to get the highest and best offer for your seller.

 

A bidding war can scare away more buyers than it attracts. The fact is the first offers can be the best offers. Buyers in this market who have lost out on their dream home for being too slow or offering too low, will make their highest and best offer on day 1. Get two set of buyers making their best offers and we cam quick and at a great price for the seller.  I tell it like it is. I give the seller the facts, the pros and the cons so they can make the best decision for them.

 

 

The MOST IMPORTANT message is to share with every consumer that my philosophy is simple, provide more personal and professional service to guide clients through each step of the buying or selling process. All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest. Those that hire me, find a dedication like no other.

 

 

To CONTACT Scott Godzyk please call 603.661.2121 or EMAIL: Sctprop@aol.com .

 

About the Aut

My buyers did not want this home, teh seller scared them as well. 

 

hor: Scott Godzyk is the Owner/Broker of the Godzyk Real Estate Services in Manchester NH. Proud to be locally owned and operated with 32 years of experience, Scott is a leading Agent for Listing and Selling Homes in this area.We are Full Time Agents ready to serve all of your Real Estate needs. Servicing Hillsborough, Rockingham, Merrimack and Belknap counties. 

 

    

close

Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Debbie Reynolds 05/29/2018 05:00 AM
Topic:
Home Selling
Location:
New Hampshire Hillsborough County Manchester
Groups:
POSITIVE ATTITUDE for the Weary Soul
Bananatude
Bartender, Make it a Double
Crap-Tacular
Old Farts Club

Spam prevention
Show All Comments
Rainmaker
3,694,305
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Scott Godzyk ,

A good topic! Love the question, comments and Congrats on a well deserved featured post! I usually always price at market price and let the market take its course. However, I'm with Nina Hollander comments "It depends".

May 23, 2018 05:39 AM #34
Rainmaker
978,307
Corinne Guest
Barrington Realty Company - Barrington, IL
Barrington Lifestyles

Interesting question and one that is more common in sellers markets. It would not fly here at all!

May 23, 2018 06:36 AM #35
Rainmaker
1,039,178
Margaret Goss
Baird & Warner Real Estate - Winnetka, IL
Chicago's North Shore & Winnetka Real Estate

It's a valid strategy in some cases - but I wouldn't automatically apply it to any home. We're experience a buyer's market so with ample inventory and a motivated seller, pricing at the low end of the recommended range is a good strategy. 

Most sellers are not comfortable with under pricing though.

May 23, 2018 07:02 AM #36
Rainmaker
1,694,198
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

The problem with pricing in my very hot sellers' market is if you price at what a likely sales price would be, buyers take one look, mentally add on 10% and decide the house isn't worth that much. Buyers expect to pay over list price by 8%-15% depending on the town and type of property. Until we have a more balanced market, I don't see it changing.

May 23, 2018 07:11 AM #37
Rainmaker
2,379,908
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

I price at market or a taddy below to trigger the process of selling and preserve Fiduciary. The idea of a bidding war while exciting is a tangent. Let us not forget the concept of role reversal i.e. how would you feel? Buying, investing and selling is not complex unless we make it so. Wringing out out every dollar from a sale comes with risk...Greed is no respecter of persons so beware

May 23, 2018 07:33 AM #38
Rainer
269,221
Ron Aguilar
Continental Mortgage - Saint George, UT
Mortgage & Real Estate Advisor since 1995

Excellent topic, I enjoyed the responses since I am always learning.

May 23, 2018 07:42 AM #39
Rainmaker
392,846
Matt Brady
Skyline Home Loans - Del Mar, CA
Lending With Competence And Character

What happens if someone brings you a full price non-contingent offer and you do not get a bidding war started? Do you have to sell it or pay the commission? 

May 23, 2018 08:50 AM #40
Rainer
22,327
Eric Sztanyo
Keller Williams Advisors Realty - Cincinnati, OH
Cincinnati & NKY Realtor® | TeamSztanyo.com

Wow, lots of conversation this post stirred up. Sounds like you are generally listing at market value, which most agents here are agreeing to. A catching title though. Ha ha. 

May 23, 2018 08:52 AM #41
Rainmaker
380,626
John Wiley
Right Move Real Estate Group- EXP Realty - Fort Myers, FL
Lee County, FL Real Estate GRI, SRES,GREEN,PSA

Scott, glad you chose to write on the topic of pricing to create a bidding war.

I think you have a strong strategy that will benefit the seller.

Presenting a range so the seller can see what to expect. 

Thanks for sharing.

May 23, 2018 08:54 AM #42
Rainer
106,268
Christine Kankowski North SD and Temecula
House Match Inc - Poway, CA
Excellent Sales and Property Management

I prefer to price it as right as I can.  Not too high, not too low.  YHou will attract those in the market at that price and they will know what else is on the market at that price to compare.  Better to get those knowing that is their range, than someone in the heat of hte moment offering too much and then backing out. 

May 23, 2018 03:00 PM #43
Ambassador
2,826,073
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

It's not my style and it's going to get you anywhere but offers you don't want to accept in my market.

May 23, 2018 05:19 PM #44
Ambassador
3,980,624
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I have never heard this from a seller. I am sure it is a strategy of some agents. I sugggest pricing at market and let it take care of itself as buyers see it.

May 23, 2018 07:41 PM #45
Rainmaker
465,306
Bruce Kunz
C21 Solid Gold Realty, Brick, NJ, 732-920-2100 - Howell, NJ
REALTOR®, Brick & Howell NJ Homes for Sale

Hi Scott Godzyk  Thanks for 'inciting' this though process. I alos would rather suggest a fair market price to start. If that causes a battle, then OK, but at least it's in the seller's best interest.
Bruce

 

May 23, 2018 08:14 PM #46
Rainer
477,165
Sham Reddy
H E R Realty, Dayton, OH - Dayton, OH
CRS

In this seller's market, that would be smart move!!!

Get two set of buyers making their best offers and we cam quick and at a great price for the seller.  I tell it like it is. I give the seller the facts, the pros and the cons so they can make the best decision for them.

May 24, 2018 04:11 AM #47
Rainmaker
1,915,388
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Price it in line with current market values! Multiple offer guidelines are needed if you want to play the jump for meat, pitting lots of buyers against each other in a bidding war. But someone can cry foul, get lawyers involved and make it messy. Deal with the multiple offers when they happen but not enough hours in the day to herd agents like cats that all want updates, are running gunning to get an advantage. Too much emotion and energy poured into those drama sessions.

May 24, 2018 07:56 AM #48
Rainmaker
393,451
BILL CHERRY
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

It's interesting how all of this has changed during my 51 years as a broker. Our listing contracts and the legal interpretation was that the price was the price and the terms were the terms.  If a buyer met them, the seller had to sell to him. Now we have listing prices set below what the seller will sell for, and bidding wars the occur even when the listing price is on target.  I personally think both of them have made us close in respect to used car salesmen.

May 24, 2018 10:55 AM #49
Rainmaker
367,100
Marney Kirk
Cummings & Co. Realtors - Towson, MD
Towson, Maryland Real Estate

Hi Scott, great post. In some areas of our market, I am seeing a lot of bidding wars on homes that appeared by market analysis to be low, but other areas are not doing the same thing. It is confusing for buyers who think the house is worth XX, but then we show them the sales in the area showing the value to be closer to XXX.

May 24, 2018 12:25 PM #50
Ambassador
1,206,533
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

Very good post and message.  Some sellers can handle it, some won't.  Buyers, on the other hand tend to get nervous in a bidding war, especially if they are first time buyers.  Excellent post and message!  

May 24, 2018 01:14 PM #51
Ambassador
3,980,624
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

This is a strategy many agents use. In my market pricing right gets the most attention.

May 28, 2018 06:05 PM #52
Rainmaker
683,455
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Scott Godzyk 

To incite a bidding war isn't a smart marketing strategy, imho. Why not price it at market and let the offers come in. If there are multiple offers I will inform all bidders and allow them 1 opportunity to make an adjustment if they choose to. The banks are what concern me, i.e. the appraisal process.

May 29, 2018 05:40 AM #53
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
2,872,041

Scott Godzyk

One of Manchester NH's Leading Agents
Ask me a question
*
*
*
*
Spam prevention

Additional Information