03-11-2013, 10:51 AM
Put in an offer on a house over the weekend. It came on the market on Friday, well below its value - we immediately made an appt to go and see it. Earliest we could get was on Sunday. We got there, and there were easily 20 cars parked around it with other prospective buyers. We went in with what I felt was a pretty aggressive bid, so hopefully we'll get lucky. We could still lose it though, because our bid was still below what I feel it could currently sell for.
The interesting part is that I haven't seen this strategy from a selling standpoint before. Instead of listing the house for value, list it well below and drum up the excitement in order to get the bidding war started. Late Sunday night all bids got a message stating several bids were received, please place your best revised offer by 5pm Monday (today). Even if I don't get the house I am very interested to see how this all pans out, and how high the winning bid actually goes.
Incidentally, the House went on the market at 249, I went in at 261, and then revised to 263. I believe the house should have been listed for 300 to sell at 280 (or get lucky to sell at a full 300). Anyway, I just thought is was a different and possibly better way to get to a price that the seller wanted. In most circumstances you are listing higher than want you will sell for simply because you know you will get negotiated down. To that end, by listing high, you may alienate prospective buyers. By listing it low, you have the ability (at least in a high demand market) to push the bidding war.
Sorry for hijacking the thread btw...
The interesting part is that I haven't seen this strategy from a selling standpoint before. Instead of listing the house for value, list it well below and drum up the excitement in order to get the bidding war started. Late Sunday night all bids got a message stating several bids were received, please place your best revised offer by 5pm Monday (today). Even if I don't get the house I am very interested to see how this all pans out, and how high the winning bid actually goes.
Incidentally, the House went on the market at 249, I went in at 261, and then revised to 263. I believe the house should have been listed for 300 to sell at 280 (or get lucky to sell at a full 300). Anyway, I just thought is was a different and possibly better way to get to a price that the seller wanted. In most circumstances you are listing higher than want you will sell for simply because you know you will get negotiated down. To that end, by listing high, you may alienate prospective buyers. By listing it low, you have the ability (at least in a high demand market) to push the bidding war.
Sorry for hijacking the thread btw...
Gameless (for now)