The Real Estate Price is Right.

In a busy Real Estate market there are two main listing strategies that a seller and their listing agent may use – the first is to price the home at what it’s worth and wait for offers to come in at any time and the second is to underprice the home and set an offer night on which potential buyers to bid on what they would be willing to pay for the property (an auction scenario). In a competitive market or hot neighbourhood, the latter is typically used. What’s important to note about utilizing an offer night: the asking (or ‘list’) price is nothing more than a marketing strategy – a ploy to get more people in the door and hopefully help sell for a price bid up through increased competition between buyers.

Buyers looking to purchase property are very knowledgeable – they now know that when a home is listed with an “offer night”, the seller is expecting to receive an offer for more than the asking price.

But what happens when the seller has set an offer night but NO OFFERS?

What happens when a home is priced at its actual value and  the sellers set an offer night instead of under pricing it to get multiple offers- In this strategy scenario, probable, most likely…NO OFFERS.

The Reason is that Buyers get turned off. They see that the selling agent and or seller is trying to upsell the property and do not want to be involved in that type of marketing. They do not want to be involved in a bidding war for a property that is over priced.

Then what happens when it doesn’t sell on “offer night” is a stigma is attached to the property, meaning Buyers often wonder why didn’t the property sell,they ask “what is wrong with it?” “maybe I am missing something” so they move on to looking at other homes for sale.

I sincerely believe when you deal fairly with potential buyers they will be fair to you!

Make sure you are well informed about which listing strategy you should take when selling Property.

Simply ask Mike about his marketing and negotiating strategies.