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.
Best of Luck
John R Facchini
Full Time Realtor
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.
Broker / Sales Associate
Orange Key Realty
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.
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.
"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.