Dear Sue,
Because I plan on selling and buying within the next couple of months, I found the offer strategy that you wrote about last week to be very interesting. I want to be able to write a “winning” offer when the time comes.
I need a strategy to attract multiple offers. I have heard that the price is often “driven up” in multiple-offer situations. In fact, I believe that you reported that in some price ranges the offers were as much as 5 to 6 percent above the asking price.
What strategies can I implement to push my price up?
~ Strategic Sam
Dear Sam,
No one has ever asked me that question before. I find your question to be very interesting and fun to think about.
A very smart strategy that the banks have been using is to price their foreclosures significantly below current market value.
The strategy has created multiple offers. The agents representing the lenders are then asking each buyer to bring in their “highest and best” offer.
The highest offers are almost always above the asking price ,but the best offers are cash. The lender chooses the offer that they like best. Keep in mind that it is not the bottom line as much as it is the certainty that cash can provide.
Another strategy commonly used in many areas is pricing the property below market value and then offering the property for sale for a specified period of time in order to accumulate offers.
Lets say that the last comparable sale for your property was $300,000. You decide to list and market your property for $289,000. Your agent advertises and announces in the multiple listing service that the offers will be presented in 10 business days.
The hope is that many buyers vying for your property will go into an offering frenzy and bid your property up over the $300,000 mark.
Regardless of what strategy you use you must remember that we are in a declining market. The best strategy for a successful sale is to price your property at or below the last comparable sale price.
Your agent will tell you the right things to do to put your home in top show condition. Keep a tight rein on your budget because you are not likely to recoup expensive improvements.
Putting your home in top condition will serve to make it more desirable and sell faster. In a declining market the faster your home sells the more you will net.
Exposure to as many potential buyers and agents as possible will create the most competition for your home and get you the highest sales price in the most reasonable amount of time. Our local market requires that Internet advertising and print advertising are a must.
Implementing today’s marketing strategies for today’s market conditions is a matter of good Home $$$s and Sense.
Sue Thompson owns HomeTown Realtors in Auburn. She can be reached at seesue@seehometown.com.
