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I would price the house for what it is really worth, and not inflate the price to create useless bidding wars. Which is exactly what we did when we sold our last house back in 2005.
Bidding wars are not created by inflating the price. Inflating the price can cause it to be over priced where buyers won't look at it.
Apparently I have been all wrong about house selling. Here I though inflating the price would drive away buyers when apparently it would create a bidding war.
Apparently I have been all wrong about house selling. Here I though inflating the price would drive away buyers when apparently it would create a bidding war.
Yeah, I thought my place was worth about $300,000, but I think I will ask $400,000 to get that bidding war fire stoked.
I would price the house for what it is really worth, and not inflate the price to create useless bidding wars. Which is exactly what we did when we sold our last house back in 2005.
RE101 a house IS WORTH what an able, willing buyer will pay for it.
The market/buyers set values. Not apprasiers. Not sellers. Not agents.
Everything is about supply and demand. If the supply of homes is "very low" like you state, then the house is still worth what someone is willing to pay for it with not allowing another buyer to buy it. Market demands what it demands.
In a way that is true (cash no appraisal), but if the offer has an appraisal contingency it is only worth what the comps will support in that case. So it is not just about supply and demand, but what others in recent history have been paying.
This is an old real estate agent tactic to goose you into paying more money, perhaps more than you should. I can't tell you the number of times I've bid on homes that have languished on the market, only to be told that there are suddenly others who want the same property. I believe in most cases, you end up bidding against yourself if you escalate your offer. I tend to walk away from such situations and I've never regretted that. Very often, you find that the house remains listed because there were never any other bidders. If that happens, you can always go back. If the agent, by some rare chance, is telling the truth, move on. Plenty of other houses out there.
This is an old real estate agent tactic to goose you into paying more money, perhaps more than you should. I can't tell you the number of times I've bid on homes that have languished on the market, only to be told that there are suddenly others who want the same property. I believe in most cases, you end up bidding against yourself if you escalate your offer. I tend to walk away from such situations and I've never regretted that. Very often, you find that the house remains listed because there were never any other bidders. If that happens, you can always go back. If the agent, by some rare chance, is telling the truth, move on. Plenty of other houses out there.
The buyer said the inventory is really low. On the other hand the buyers agent said the home was by no means a steal, so I think the buyer already knows better than to pay 25k over. The so called tactic is long gone - most markets now, if an agent does this the the buyer WILL walk. So is it common? I doubt it, and as far as the case of the home remaining on the market (with someone having offered too much), well that would make sense since it wouldn't make it thru the appraisal process.
This is an old real estate agent tactic to goose you into paying more money, perhaps more than you should. I can't tell you the number of times I've bid on homes that have languished on the market, only to be told that there are suddenly others who want the same property. I believe in most cases, you end up bidding against yourself if you escalate your offer. I tend to walk away from such situations and I've never regretted that. Very often, you find that the house remains listed because there were never any other bidders. If that happens, you can always go back. If the agent, by some rare chance, is telling the truth, move on. Plenty of other houses out there.
In a fast moving market today in the Phoenix area, for homes under $200k price at the market for the condition, you don't have to be told that there are others bidding. You know there will be multiple offers.
When a listing agent says there is another offer, there probably is, because he doesn't want to drive buyers away by lying. However, you still only offer what you feel is a fair value for the market and what you're willing to pay.
During the past 2 years, there were 2 homes in the 500-700 range and one at 1.2 mil that had been on the market for some time. When I called to ask some questions I was told that they had an offer. In all three cases it was true.
My clients lost the first two because they didn't believe there were other offers, and wouldn't listen to me that the market was changing. So they made the offers too low and lost to the other offers. On the 1.2 mil we got the home because we made a reasonable offer, to get in the ball park, and were able to negotiate a successful deal. The other offer was half cash, half mortgage. Our offer was all cash.
It was seem like a very riskly move for very little payoff to lie about it. If you assume the seller's agent is getting 3% an extra 25K is only $750 and they have to pay taxes on that and some kind of split with their broker. And they risk scaring the buyer away and getting absolutely nothing on the deal.
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