How To Get More Than Asking Price For Your House
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If you're like most home sellers, you probably think it's impossible to get multiple bidders on your home these days. You may also think that selling above list price is unheard-of in this current real estate market. We have created a concept that makes multiple offers and selling above list price a reality for many home sellers.
Before we talk about this concept, I first want to mention the dangers of overpricing your home. Did you know that if your property is just 10% overpriced, only 2% of buyers will come preview it? If your home is only 5% overpriced, then you will have about 30% of buyers looking at it. At fair market value, you might get about 60% of buyers previewing your home. However, if you list your property at 10% below market value, you'll get 92% or more of buyers coming to look at your property.
So, as you can see, listing your home under fair market value can create a frenzy of activity. Of course, you don't want to sell your home for less than it's worth unless you're in a distress situation. Our concept will allow you to price your home below fair market value, but sell it at or above.
The name of this concept that we have created is called a progressive reserve auction. In fact, you have to have a licensed auctioneer to do it (which we do). This is not a distress sale situation, and there is a reserve price that has to be met. It's also important to note that this is not a live auction, but an online MLS auction that is Realtor friendly.
Realtors will show your property as normal and use the typical offer forms as well as a special addendum. This means that Realtors will be comfortable with the process, so you will get a lot more showings and offers. In most cases, you will get multiple offers on your property.
In the beginning, you will price your home at fair market value in MLS. After a couple of days, we will drop the price to a minimum starting bid in MLS. This creates a lot of action on your home quickly. However, you remain in control the whole time as you are not required to accept any offer. You have the right to reject offers, let bidders drive the price up and wait for the best offer or simply accept an offer.
In fact, sellers even have the right to bid on their own auction property to drive the demand up. Of course, we disclose this to any potential buyers.
Let me give you a quick example of this in action. Recently, I went on a listing appointment for a relocation seller. Two other realtors also interviewed for the position. All of us assessed the value at about $190,000-$195,000. The seller decided to list with me and use this auction concept.
We listed the property at $199,900. After a couple of days, we dropped the price in MLS to a $169,900 starting bid. Within one week, we have had seven showings and three offers. The first bid was for $182,000, the second bid was for $185,000 in the third bid was for $183,000. The seller did not find any of those to be acceptable.
Next, we asked for the buyers to send their highest and best offers. We told them to consider this their final chance at the property. The first offer that came back was for $199,900. The second offer was for $195,000. The third offer was for $215,000!
Two weeks later, the appraiser came out and was shocked by the selling price. We helped him find comparables in the area and he was able to appraise the property for $215,000.
As you can see, this is an innovative concept that can help home sellers who want to get the most out of their property. If you're interested in this concept or want to learn more, drop me an email or give me a call today.
