Home Selling in West Orange>Question Details

A Heffers, Other/Just Looking in 10271

by being aggressive does that mean to low ball my asking price- & must I accept the offer

Asked by A Heffers, 10271 Thu Oct 11, 2007

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In general, yes, people do use the term "aggressive" to indicate a property that has been priced low or very attractive to buyers.

Many NJ listing contracts contain some variation of the language that states if a willing and capable buyer is produced, the broker is entitled to collect a commission.

It becomes debatable and you will find RE Pros on both sides of the fence on this...............I strongly support underpricing as a strategy to gain market attention. I have seen this strategy generate multiple offers, even in a buyer market. It still has to be attractive enough to garner attention. There is no guarantee that pricing under market will definitely gain you a buyer. You have to be more attractive than the competition in the total picture, the offereing product and the price.
3 votes Thank Flag Link Sat Oct 13, 2007
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
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Aggressive pricing could also be translated into positioning yourself in the market pricing just below general market value lets say 5% below would give you an edge over similar homes in your area also the theory is that advantage would create more volume of potential buyers with a result of multiple offers thus getting full price or even more. And no you do not have to accept . Acceptance is not just price driven it is also predicated on terms of the deal.

Best of Luck


John R Facchini
Full Time Realtor
Jrfproperties.com
0 votes Thank Flag Link Tue Jun 3, 2014
Not sure what offer is or the value of your home. With that said you should have an idea of fair market value & do not have to accept "low ball' offers if that is in fact the case.
0 votes Thank Flag Link Tue Jun 3, 2014
"Aggressive pricing" would mean that you price your home to sell and sell quick.

I just recently had a client that was very realistic regarding pricing of the house and wanted a certain number... MY comps and CMA came in around 369,000 listing pricing for the house with a sale price
estimate of in the 350's. But she wanted to sell the house in one day... soooo,.. we listed it at 349,000
I did my magic, online and through email... and Bang! Two offers within 24 hours off listing the house at full price, 30 day closing. Done and over.

That was aggressive pricing and a great example of what could happen when sellers who are motivated make the reight choices when listing their homes.

John Sacktig
Broker / Sales Associate
Orange Key Realty
732-213-1409
0 votes Thank Flag Link Fri May 30, 2008
This is the time that being "aggressive" MAY turn out to be a great investment. In almost all cases you will draw a whole lot more attention by pricing it below the market value. Think about it as it it's EBay. Everything starts low and somehow gets the "right" price at the end. You will get multiple offers that will get you a higher price.
With that said, if your home is not a great buy due to condition, location ets. you will have to be extra aggressive. Either way you may want to speak with a realtor who will pain a true picture of the maket around you. Sharon and myself specialize in pricing correctly and even more so alway adivse on being aggressive as you can. We have done it few times and it did turned out the way we predicated. I am sure you are not going to mind accepting a higher price than you ask for. You must have a great negotiator on your side. Good luck and let us know if you will require any further assistance.
Sharonandkaren@prunewjersey.com
0 votes Thank Flag Link Thu May 29, 2008
I didn't understand your question either, since low ball usually refers to an offer.
I don't know what price range you are in, but I have found that in some instances pricing in a range generates multiple offers.
0 votes Thank Flag Link Sat Oct 13, 2007
I think being aggressive with your list price means being at the top of the search results when buyers and their realtors are reviewing inventory. It doesn't mean pricing it below market value...it means pricing it so buyers see it's value. A typical buyer or their agent will search all similar properties (ie. 3/4 br, 1 or 2 baths, neighbrhood, condition, etc) in a particular price range with maybe a $50,000 spread (this spread gets wider as the home prices increase). From the results of perhaps 15 available properties, they look for the top 4 or 5 that have all the features they seek. You and your realtor need to determine which homes in your area make up the Top third of properties in a particluar range and price your home competetively against them. These are the homes that will be shown consistently, and if your home is priced aggressively, the value will show. Of course, for this to be effective you have to have an honest assessment of your homes current condition and have faith in your realtor's market analysis of the property.

The bottom line is...don't list your home at a price you are unwilling to accept. If you price it right, it will sell and you might be pleasantly surprised at the result. You can demonstrate value and create a sense of urgency for buyers without giving away your home.

Good luck!
Web Reference: http://www.kevinkinney.com
0 votes Thank Flag Link Thu Oct 11, 2007
Well, If you list your home at a "competitive price" you may recieve multiple offers. If you get a full price offer, do you have to accept it? No you don't , But I''ll refer to the answer below. Which was answered perfectly by Ute.

"You may owe a commission to the agents as they did exactly what you asked them to do, sell the house for the listing price. Especially, the buyer's agent could say that he/she procured a full price offer and should therefore be entitled to the promised commission. "
Web Reference: http://www.johnsacktig.com
0 votes Thank Flag Link Thu Oct 11, 2007
selling- which is why I used Asking price & not offer- Was that improper terminology?
0 votes Thank Flag Link Thu Oct 11, 2007
I'm not sure I understand your question - are you buying or selling? If you are buying and make a low ball offer, and the seller accepts it you still have a 3 day statutory attorney review period during which time either party may 'walk away' from the deal with no penalties.
0 votes Thank Flag Link Thu Oct 11, 2007
Hello A Heffers. When you say "low ball" my asking price I am assuming you are talking about listing your property below market value. I would consider that competitive pricing and whether you want to do it or not would depend on how motivated you are to sell. When you list a property at a certain price and someone brings a full price offer and has no other contingencies and you decide not to sell at the advertised asking price, you may owe a commission to the agents as they did exactly what you asked them to do, sell the house for the listing price. Especially, the buyer's agent could say that he/she procured a full price offer and should therefore be entitled to the promised commission.

The story is a little bit different if you receive a full price offer, but there are other terms that fall outside the norm (e.g., unfavorable financing terms, request for repairs, etc.). Price is not everything when you look at an offer. I would not recommend that you list your property for a price that you are not willing to accept. Think of it as an auction and you would not set the minimum bid a price lower than what you are willing to accept. Best of luck to you.
Web Reference: http://www.go2kw.com
0 votes Thank Flag Link Thu Oct 11, 2007
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
MVP'08
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