Low Pricing May Bring Multiple Offers

Multiple offers sounds great, doesn’t it? You can get them if you price the property well below market value.

Selling Minnesota Houses - Shoreview MN Home Buyers: The idea of using low pricing to attract many buyers is a good one. It does work, but there are some cautionary tales that go along with this method. When your house is priced at just below the current market value you will get interest from buyers. That’s for sure. A few thousand dollars difference in the price of your house and 4 others in the same neighborhood gives you the advantage.

Price the house well below what the others are asking and you may be gambling. A house priced far below what others are going for tells buyers a few things. Whether or not these things are true is beside the point. It’s what they might think that’s important, true or not. Pricing the house too low will usually get buyers thinking that although they may be getting a super bargain, they will be waiting for the other shoe to drop. In other words, what’s wrong with the house that we don’t know about and do we really want to sign the contract and then find out? That seems like quite a gamble to some buyers.

Be prepared to take the lower amount if you get just on buyer interested, though.

Investors are a different story, though. Their main concern is usually the price. They buy houses all the time that are in ill states of repair and are sometimes quite damaged by tenants or owners unable to care for their property. Sometimes the house has been abandoned or vacant for some time. They have the ability to fix what needs fixing and turn the property into a money maker. They aren’t scared off by potential problems.

This is where you will find your dilemma and will be gambling by pricing your house very low. You’ll get interest, that’s for sure. By pricing low you may get more than one offer. The interested parties may start bidding against each other and you’ll end up getting more for the house than what you were asking for it. The trouble with this method is that you must be able to live with the lower amount that you asked in the first place. If you only have one interested buyer you must, by law, sell the house for that lower asking price. So figure out the lowest amount you can accept for the property and don’t go below that under any circumstances. This way you will be able to sell for what you need to pay off the mortgage and there won’t be any real gamble.

Tagged with: getting offers

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