We have heard it over and over again about overpricing a home will result in an unsold home, taking a long time to sell, and reducing the price, over and over again. every article I have read mentions "price reductions" as a necessary solution. And that sellers need to be priced somewhere in the lower end of the majority of comparable homes. This is all common sense. But what results would we have if sellers were to list their homes at a price low enough that it just could not be ignored?
For the majority of the country, it is a buyer's market, and these buyers know it. So, they are looking for rock bottom prices, and incentives out the wazoo. I am wondering if pricing a property so low would draw numerous buyers out to see a home, thus resulting in multiple offers, and hopefully increased dollar amount to beat out the other buyers, or bidding wars as it is sometimes referred to.
For instance, if a property was priced $15k below all other comparable properties in the area (i.e., $175k-$185k), but you listed it for $160k, with being comarable in size, location, amenities, and condition. Do you think this would spark activity? Maybe even on the listing comments that there is only going to be 1 Open House held for the property on such and such date, drawing as much buyer interest as possible in such a small time frame. And then have in the details that offers are to be submitted by such and such date (maybe 2-3 days after the open house). Then be able to sit down with the seller and review all offers that have been submitted.
Now, I know there would be mixed feelings about this from both the agent and the client side, but I would like to hear some feedback.