Wednesday, November 14, 2018

If my realtor is advising me to list my home $15,000 below market to try to create a bidding war, is this a sound strategy? Won’t this hurt the home’s marketability if the plan does not work?


With all due respect to the others who answered who are not REALTORs and don’t have any hard data to back up their claims, here is my proof, with data. Take a look at the sales on San Luis Way in Morgan Hill. All of these sales are of the IDENTICAL FLOOR PLAN at around the SAME TIME PERIOD.
16766 San Luis Way, Morgan Hill 95037 asked for $715,000 and they got $715,000.
16772 San Luis Way, Morgan Hill 95037 asked for $699,000 and they got $720,000.
16756 San Luis Way, Morgan Hill 95037 asked for $698,888 and we got $735,000.
That last one listed is MY LISTING which got a RECORD PRICE. I advised my client to list low, so that he could get multiple offers. He was in a rush to sell because he was already in contract to purchase a house.
Also, prices in Silicon Valley hit a peak earlier in 2018 and have been declining since then. Therefore, getting his place sold quickly was in my CLIENT’S BEST INTEREST. (Also, please note that even in a declining market, I got the highest price for my seller.)
Don’t assume that pricing it low is for the REALTOR’s good. No, it was for MY CLIENT’S GOOD.
I would have had no problem taking longer to sell, having my yard sign up there longer to get more advertising. In actuality, because I sold quickly I got LESS PUBLICITY for it, so indeed it was in my CLIENT’S BEST INTEREST to sell quickly, not mine.
When you price it low, you QUICKLY get everyone’s best offer on the table and you don’t have to play any games.
Also, despite what other may tell you, even if the strategy did not work, the seller is in no way obligated to sell. I told my client, we price it low to quickly see what we can get. If you don’t get what you want, we take it back off the market, you pull my sign off, and we both quickly go back to living our lives with the least amount of interruption.
As I said in a previous post, you can’t stereotype all REALTORs as being the same. Some of us actually do what’s in the CLIENT’S BEST INTEREST.

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