Auctions, whether they be traditional offline for housing, art, antiques, etc., or online like eBay, are based upon allowing buyers to determine the value based upon the price they are willing to pay.
My comment that follows is based upon the collective expressions and thoughts of a multitude of buyers in marketplace. In a market with much inventory, buyers are confident that the property of interest to them will be there next week, the week after, or next month. They donâ€™t anticipate the property of interest to disappear, but even if it does, there are plenty more on the market.
The average buyer in the marketplace of high inventory has no sense of urgency. Pricing at market doesnâ€™t make you stand out. Pricing slightly below market does.
An employer interviewing to fill a position has no sense of urgency when 5 candidates are nearly equal. If the employer waits a month, and makes an offer to a candidate who has gone elsewhere, so what? The employer moves to one of the other equally qualified 4. If the employer meets a candidate who WOWs them, the employer is motivated to act now. Similarly, buyer react to a WOW factor.
When I work for a seller, I advise based upon how the market will respond, and based upon what will deliver the best results for my seller. While there might be a buyer who â€œleavesâ€ because they hear the words â€œbidding warâ€ either because they donâ€™t want to bid up, or they are offended as a poster mentioned here, my counsel to sellers is predicated upon how the majority of buyers respond. In a competitive marketplace, you have to shine brighter to capture attention and deliver a WOW factor. Value is what makes a WOW factor in real estate. I advise serious sellers to price slightly below market. The market will push the price up, if warranted. Likewise, the market pushes prices down on overpriced properties. The downward push negatively impacts the bottom line more so than simply pricing right or under market to begin with. The stigma of a long days on market, and reduced prices indicating market rejection have more downward push than simply going in lower to begin with.
Bottom line: Price at market or slightly below. Don't price over with the hope of leaivng room for negotiation. It will hurt you, not help you.
Instead of $403K or $408K the seller prices it at $400K from the get go. All the buyers ignore the other competing listings, they offer on the $400K house instead. Then they start to overbid as they are informed that it is a "multiple offer situation" . This brings on the auction fever in the buyers. With overbids, the price gets pushed back up to ... or even over the market value.
And remember that pricing is relative, you may get less than you expect on your home when you sell it but you will likely get the next home you purchase for less. Don't get caught in the trap of thinking you will get top dollar for your home and then turn around and buy a home at a reduced price. The longer it takes to sell your home the less you will end up with.
Best wishes in your move!
Except as a buyer I consider 403k, 405k, 408k and 412k to be the same price. If the properties were essentially equal I'd make the same offer to the one i liked best. If refused I'd make the same offer to #2
Buyers expect to pay pre bubble prices which would be affordable with the conventional loans being offered right now. If your house is priced using these guidelines, it will sell.
Example: Recent "solds" suggest your house will actually sell for $400,000. Four comparable houses are currently on the market: $405,000, $410,000, $412,000, and $415,000. I'd suggest you consider pricing it somewhere between $403,000 and $408,000. The lower number makes you the least expensive; the higher number gives you more wiggle room but still puts you at the lower end of the range. Other factors (not covered here) involve any special characteristics of your home and your eagerness to sell.
Hope that helps.