When deciding on a price for your property, do you price it low and set an offer date with the goal of getting multiple offers? Or do you price at current market value and accept offers anytime? That depends on your property, the market – and your agent’s strategy.
These days, a lot of properties are deliberately underpriced and only accept offers on a certain date – usually a week or so after the listing hits the market. The strategy is to attract more potential buyers and create competition. Building anticipation, getting more eyes on your property, and creating a sense of urgency creates a higher price for your property. But an appealing price and an offer date are no guarantee you'll get the price you want.
So what's the best way to get a good price for your property? Ultimately, that's a conversation you should have with your agent.
Not every property should be priced for an offer date
It depends on a lot of things, like what’s happening in the market, your location, the building, etc. If your property is in a “competitive” price range (under $1M for a condo and under $2.5M for a house),Think of it this way: you want to get as much traffic to your listing as possible. If it's priced at $1M, people with filters set at an $850K max won't see it. On the other hand, if you list at $850K with the goal of getting $1M, you’ll get a bigger audience.
Why would you want buyers to see a listing that’s out of their budget? Here's the thing: buying a home is an emotional decision. If they see your listing and fall in love with it, they'll find a way to raise their budget. But if they never saw your listing in the first place, you’ve lost that audience.
So what happens if you price strategically but get only low-ball bids on offer day – or no offers at all? It happens – it’s not the end of the world. Usually taking the listing off the market and relisting it the next day at a more realistic number maybe not an bad idea.
Although things have cooled a bit due to interest rate hikes, demand is still strong and multiple offers are still happening. But that could change, so you'll want an agent with their finger on the pulse of the market.
What happens if you set an offer date but get a bully offer?
A bully offer is one that comes in before the offer date and is typically an above-and-beyond price with no conditions that’s designed to make sellers think they couldn’t do better on offer day. As a seller, if you think you can get more, you can always say no. You never have to accept an offer you're not satisfied with. Saying no doesn't mean those buyers won't come back on offer day, but there's always that possibility. Your agent will advise you, but ultimately, the choice is yours.
Are you looking to sell and get the most out of your investment?
Contact us today! AtBrokerage we can talk about the best pricing strategy for your property and help our clients make the right choice, at the right time and the right price.
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