Actually, I think your plan is a good one,
You really can't, imo, underprice a home....just like water, it will seek its own level......what you can hopfully do is create excitement as agents tell their buyers about a "great reducton", a "great value".... and a motivated seller..
In my area, this type of pricing has often created a flurry of activity that results in a quicker sale.
Now......understand that there are no guaranties...............the price you are considering might not be as low as you think it is.....you will only really know once you test the market......but the hope is that it will open the floodgates to encourage offers to come in.
A real estate guru in my state, by the name of Jeffrey Otteau, advises that sellers price homes much below the lowest priced competitor.....you want to capture the very next buyer that comes along. Let your condo stand out from the rest.
If you reduce it, and still don't get any offers.........it means either there are absolutely NO buyers currently out there.......or, you still haven't hit that special number that will bring the offers in.
This is not a market for the weak of heart..........I suggest you follow your agent's advice, and go for it!!
Prudential NJ Properties
Here's hoping the journey doesn't last for years, as a few of my neighbors have already. Thanks for answering an ancy first-time seller!
In all deference to my esteemed collegues, local markets are different. Price is king with buyers.
If you have had 3 showings in a month - which is great, there is one of two things wrong. Price is too high or there is a problem with the property that makes it unattractive to buyers. If you have eliminated the latter, it must be the former.
Couple suggestions. First, I hope you are working with an agent who can help you determine the correct fiar market value. If you take a page from the bank's playbook, they price at fair market value or under to achieve a multiple bid situation. That can and does happen. And remember, you don't have to accept any offer, you are in control of that, at least. But fair market value is also good.
I would ask the showing agents for feedback or have your agent ask. They will tell you the truth. One agressive strategy if you have 3 interested people is to make an offer to the buyer and see what they say.
And don't forget that the price, one agreed, must appraise out, so fair market value is rarely a bad idea and you won't undervalue.
Bonuses are tricky. Some brokers require a split of cash bonuses, considering it commission. It just depends. Sometimes gift cards as bonus works better. But the buyer get's nothing of that and price is king. I would try and work it out with price first in a way that makes you feel comfortable.
Instead, I'd recommend another strategy (from an investor's perspective) that would eliminate--or at least severely reduce--a lot of your competition. Assuming that your sales price is based upon the current market value of your property, you could keep your price where it currently is, and offer to sell it with seller financing. You already mentioned that you only need enough to put down for your next property, so you could require your buyer to put enough down to cover your down-payment (and optionally your closing related costs).
Many lenders have increased the stringency of their underwriting criteria for condos right now, and they most likely won't seller finance any of their listings, so their pricing will be less of a factor. The majority of the rest of your competition most likely won't also offer to sell their properties with seller financing. So after having nuked your competition, your listing should sell pretty quickly provided you and your agent market it correctly.
Additionally, reach out to at least 1 of the active REI clubs in your area, and let the investors there know that you're selling your property with seller financing. I'd be surprised if you didn't receive at least 1 offer within the next week.
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Keller Williams Fox Valley Realty
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Refer to your CMA that the listing realtor would have done. If he used sold listings as comparables, then the suggested price of the CMA would be a good indicator of the market in your area. I suggest going with the price suggested by the Market Analysis done by the realtor. Unfortunately, short sales and foreclosures make up a large part of most every market these days. If you want to sell, you need to compete with these.
I would drop the price, but try to leave yourself at least 10K of negotiating room.
I just wanted to know if there's a such thing as being too aggressive on price.
Please see my blog with tips and advice to assist you in selling your house ...The TOP 5 things you should do "right now" if no one is looking at your house
It could go either way. You need an educated agent that is following a home index accurate to the Batavia area and pulling SOLD comparables relative to your condo. Regardless, if priced too high (even by a little bit) and you may be forced into finding that you are chasing the market.
Make sense? If you need anything further, let me know!
Selling property today is all about creatin opportunity for the buyer. This may require throwing out what we know about recent local market activity and putting ourselves in the buyer's shoes. Unfortunately, this often means that unless you are able to compete with "foreclosures" you can plan on a long and difficult journey.
Open house, what an awesome idea, but how do you make it even better?
It is simple, get with other neighbors on the street and talk about a Yard Sale day.
Plan a weekend where several of you neighbors will agree to have a yard sale, have one yourself and get some of the stuff you don't want to go, but most of all have your open house at the same time. Your signs should read: Street Yard Sale & Open House.
It is a greatway to announce you have your house for sale. It will get lots of traffic, and you may even make a few bucks for the day as well.
Try and be sure that your neighbors have a multitude of items for sale, Baby Stuff, Toys, Furniture, Tools, Fishing and Hunting items and more.
Go to http://www.vistaprint.com and have a cheap set of business cards made up include details of the home, address and contact numbers and also Asking Price, usually 250 card will run you about $10 including shipping. Ask each of you neighbors to throw a card into the bag with each sale.
Ask you neighbors to tell everyone at their yard sale that you have an open house going on the same day and just go on over and ask for a walk through.
Have your Realtor there for the day to help answer all questions and to possible help with writing an offer for interested parties
Most of all, have fun and enjoy the day!