In underpricing your home, you'll be drawing the largest bounty of buyers. Those who are shopping not only at the price range you list at, but also the crowd of buyers who are looking at homes priced comparably or higher. The more buyer attention you draw (and realtor attention btw, as a good agent familiar with the inventory will push your home to their customers as an amazing deal), the more likely one or more parties will make offers.
In this contentious market, I've found banks will accept only very recently run appraisals as values in some towns have been dropping. An appraisal will cost you money and may not be worth anything to you in the long run. Realtors are a much more realistic barometer of home values anyway, because we've seen what has listed and sold throughout time and can more effectively guage "smart pricing."
I'd be happy to email or fax the research I conducted to show you this tactic works more often than not. Of course, the choice remains with you. In any case, good luck to you! Don't forget to combine smart pricing with EXCELLENT PRESENTATION! You want your home to outshine the competition, too.
Joyce is right on the mark......important to note is that under pricing your property does not insure you will get multiple offers. Hopefully, you will get increased activity and we know that selling is all about VISABILITY.
The "Eckler Team"
If your goal is to get your house sold quickly, then pricing it below market value will hopefully induce multiple offers, which could lead you to getting more than what you wanted in the first place. As someone previously mentioned, it's nice to see a homeowner that thinks this way. A lot of sellers think their house is worth what is was worth 2-3 years ago, and then the house sits on the market for 6 months, doesn't get sold and then they go to their listing agents and say how come my house isn't sold yet? Good luck to you and I hope your pricing strategy gets you more than what you're asking for.
Pricing, exposure, location and availability play major parts in selling a home. A know of quite a few homes that were listed under market value and most of them did lead to multiple offers and ultimately a higher selling price. I've seen many houses listed under market value in more desirable towns tend to sell for over list price. I would be happy to prepare for you a customized cma including the all sold homes, and evaluate if any of them sold for over list price (determine whether they were listed under market value initially or just a desirable house thus leading to multiple offers), and compare the days on market, etc. Being a former resident of Little Falls, I am very much familiar with the Little Falls/Totowa market area.
As stated in my opening sentence, location (including town and street) play a big factor also in pricing a home, as well as the availability for the listing to be shown. I have seen some well priced homes on the market expire due to inconvenient showing instructions, no lockbox, etc. Even if a house is well priced, if nobody can get in to show it -- your chances of selling may be reduced.
Let's not forget about marketing.... any listing needs an aggressive marketing plan. Again, I would be happy to discuss with you my Global Marketing Strategy and share with you our Global Marketing System which is designed to position your home in front of MILLIONS of unique monthly visitors to the industryâ€™s leading web platforms. Selling your house for the highest possible selling price in the shortest amount of time is our always our goal.
Please feel free to contact me directly for more information...with no obligation.
Gina Chirico, Sales Associate
Prudential NJ Properties
973-239-7700 ext 132
This is another wonderful question. The typical question is: How much should I overprice my home so I have room to negotiate?
The market is divided into two groups of listings:
Group One sells in 30 days, about 20% of the market. In my MLS listings that sell in the first 30days sell for 100.89% of asking price.
Group Two sells in average Days on Market (DOM) AND LONGER and is about 8u0% of the market. In my market the average market time is about 75 days. Listings that take over 120 DOM to sell go for 93.6% of asking price..and that is AFTER some price reductions.
Calif. Association of REaltors did a survey, and the buyer first sees the home they purchase with a Realtor 90% of the time. So as important as the internet may be, 90% of the time the Realtor has the buyer. So Realtors average about 3-7 buyers in this current market. They are looking for properties for their buyers. When a "good deal" comes on the market, they know it right away.
That is why a well-priced, well-prepared home will actually sell for MORE than market value when it sell in the first 30 days on the market. The truth is that the 20% of homes that do sell quickly are in most cases BETTER homes. In a buyer's market, homes that need cleaning, painting, full of clutter, etc. will not sell. If and when they do sell, they sell at a deep discount.
Good luck. If you'd like a top Realtor to interview, you can contact me via my Trulia profile and I can help you.,
Your next step is to maximize exposure to potential buyers. While exposure will not cure a pricing problem, a well priced home that noone knows about doesn't stand much of a chance either. Price it right and explode onto the market and you should do just fine.
I specialize in Somerset and Middlesex Counties - if I can help, let me know.
Good luck to you!
Search and connect at http://www.feenick.com
We priced the property "aggressively" and we actually sold it in 1 day. ( a very good offer, all cash and 30 day close)
So yes, it does work.
You are one of the few people that think correctly.
In this market or any the best way to negotiate up is to price it below.
There is also other ways to sell.
Try thru Auction with http://www.sheldongood.com
All the best and let me know if you want me to connect you to these guys