Pricing Strategies for selling your Traverse City Home
There have been many creative ways to try to maximize the selling price on your Traverse City home and here is one that I just do not agree with and have seen backfire many times. Agents will intentionally price a home significantly below market value and not allow agents to show the home until an Open House, then give buyers a short time period to make an over the list price offer. The plan is to generate a frenzy and hope to get a much higher final sales price. So, does this system work? Sometimes, but typically the only real winner is the Real Estate Agent. They get a sure sale within a few days and often a cash sale, since the home was undervalued from the start. Sometimes the frenzy works and the list price goes high, but typically not. So what is more import ant to you? I higher sales price or an easier sale for your agent? The following are the reasons I have not used this system and what I do to determine a list strategy to get you the highest price
Most buyers understand when a home is under valued and just do not want to get into a bidding war, so they do not even consider looking. Less buyers looking typically means less serious interest
Most agents do not accept being denied the ability to show a home privately and do not want to have their buyers looking while the list agent and other buyers are there. Just not a good situation, resulting in less showings and possibly a lower price.
Do you really want 50 showings from buyers that think they will get a deal, but are not interested, or even qualified to submit an offer that will work. Really, 30 offers below what you really want does you no good and causes additional stress and effort. You really only want serious and qualified buyers looking.
What happens if you do not get the higher priced offer ? Either you end up rejecting full price offers or end up taking less than you wanted. If the strategy fails, you end up taking your home off the market, raising the price or more often, taking less than you want
I believe buyers want to know the “real” asking price and are willing to go over some, but do not like just guessing at what the seller is thinking. I like to price homes within the range I think they will go, on the higher end, but at a price that the seller is willing to accept if that is the best we get. This has proven to be a very good system. Maybe we get less showings, but we get more serious showings and buyers like to know the pricing is fair and that they do not have to jump through hoops to see the home or submit an offer.
