Princeton Town Topics – Let’s Talk Real Estate – March 23, 2016
SELLING? HERE’S THE BEST WAY TO GENERATE A BIDDING WAR FOR YOUR HOME
After a few years of sluggish activity, bidding wars have returned to the home market, and – not surprisingly – sellers and buyers in popular communities like Princeton and below $1,000,000 are most affected. As a seller, one of the best ways to generate a bidding war for your property is to underprice it – not so much that it throws up a red flag, but just enough so it stirs greater interest.
Studies have shown once a potential buyer decides they’re interested in buying a home, most of them automatically become at least a little emotionally invested in it. That means once they start bidding, they’re more likely to continue, even if the price goes above what they consider to be their upper limit. That’s the psychological effect of a bidding war – not just in real estate, but in auction settings as well: An initial offer makes it just a little harder to let go and walk away.
So how do you determine how to underprice your home for best effect? Start working with an agent who knows the market and understands how bidding wars work, and aim for a price slightly below your market comps.
