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Rainmaker
750,120
Brenda Mayette
Miranda Real Estate Group, Inc. - Glenville, NY
Getting results w/ knowledge & know-how!

I've been told that you can't underprice a property -- multiple offers will bring the sale price up to true market value.  Aggressive pricing will reduce days on market and tendency for a stale listing.

Jun 16, 2016 11:23 PM
Rainmaker
3,842,048
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

A smart agent here price a home at $290,000 on a Wednesday at 1:30, we wrote a offer for $340,000 at 6pm.  Agent put in brokers remarks all contracts looked at on Sunday at 5 pm,  he had 50 contracts.  We did not get it either.

Jun 17, 2016 01:44 AM
Rainmaker
512,774
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

It depends on market you're in, the willing participation of the seller, the other considerations as to how much you underprice and the skill, knowledge and experience of the agent(s) involved. 

I had a listing 3 years ago we could have priced for just over $500k and it would have made sense. By pricing at or under, we attracted a larger audience and had over 300 people through the open houses that weekend. We had 12 offers and ended up selling well over list price, ($577,000) without any contingencies.  It well exceeded all of our expectations. 

Jun 17, 2016 01:41 AM
Rainmaker
1,027,335
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

In our market, it is said it is impossible to underprice a listing because market forces will drive it up to where it should be.  Since most people are inclined to OVERPRICE a listing, I don't think "underpricing" happens as much as people seem to think it does. *THEY* may think it's underpriced when it is, in fact, priced properly.   Typically, a property perceived as underpriced will benefit from increased showings - if those showings result in multiple offers, then the price should be escalated. However, if the increased showings do not results in multiple offers, then the property is not underpriced after all. 

Jun 16, 2016 11:59 PM
Rainmaker
3,961,251
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

It depends. On market conditions.  On the particular seller.  On timing.

Jun 16, 2016 11:48 PM
Rainmaker
2,611,670
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Instant response on the listing is the primary result

Jun 17, 2016 03:50 AM
Rainmaker
4,136,000
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

I need to express "It depends" as Michael Jacobs comment. So many variables what kind of market, the seller, time of year, need to sell etc. etc.

Jun 17, 2016 01:03 AM
Rainmaker
1,510,463
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Multiple offers, more traffic, and hopefully a much higher offer.

Jun 17, 2016 07:51 AM
Rainer
45,807
Andy Madrid
Hawaii Coast Realty, LLC - Kailua-Kona, HI
Expertise, Professionalism, and Service

To shorten time on market and encourage multiple offers.

Jun 17, 2016 02:13 AM
Ambassador
3,986,518
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

If the selelr needs a quick sale and closing this would get it done. Sometimes time is money.

Jun 17, 2016 12:27 AM
Rainmaker
3,333,298
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

"At" or a little below gets people qualified to buy...Over...misses the best part of the market.

Jun 16, 2016 11:52 PM
Rainer
222,865
Bob Betel
Allstar Home Mortgage, Inc. - Sweetwater, TN
President, Allstar Home Mortgage, Inc

Some will underprice a home to draw multpul offers to drive the price back up. Buyers don't like this and IMO it is short of bait and switch.

Jun 16, 2016 11:34 PM
Rainmaker
2,014,170
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

The EBAY effect of competing bidders ! Very low DOM !

Jun 16, 2016 11:20 PM
Rainmaker
1,157,435
FN LN
Toronto, ON

Some do this in the hopes of generating additional interest in their property so that they can hopefully receive multiple offers.

Jun 16, 2016 11:17 PM
Rainmaker
869,411
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Price alters the time line.

Jun 16, 2016 11:17 PM
Rainmaker
6,375,259
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

A quicker sale.

Jun 17, 2016 08:23 PM
Rainmaker
1,965,393
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

stimulating a bidding war and getting stronger and higher offers?

Jun 17, 2016 12:52 PM
Rainmaker
806,837
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Greater traffic, which means better chance of having someone fall in love with the place and start bidding.

Jun 17, 2016 12:25 PM
Rainmaker
3,985,813
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

If this is in a very very hot market where you may get 10-15 shows in a day or more and many offers, it mary bring in more people to bid and drive up the price.

Jun 17, 2016 12:24 PM
Ambassador
2,224,067
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

In some market this could result in multiple offers that might drive the price up higher.

Jun 17, 2016 11:57 AM
Rainmaker
864,258
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

That buyers will outbid each other. It creates greater interest and desirability. One top agent in my area practices this. He sells the houses quickly and at a much higher valued than its market value. 

Jun 17, 2016 10:56 AM
Ambassador
2,782,561
Katerina Gasset
Get It Done For Me Virtual Services - Wellington, FL
Get It Done For Me Virtual Services

Getting multiple offers and creating a bidding war. :) More money for your seller. It happens more in some markets than in others. Some markets it is quite expected. 

Jun 17, 2016 08:12 AM
Rainer
69,538
Shawn and Angela Miller
Berkshire Hathaway HomeServices Amabassador Real Estate - Lincoln, NE
Lincoln and Omaha, NE REALTORS®

Days on market and most likely higher multiple offers to choose from.

Jun 17, 2016 12:55 AM
Rainmaker
5,570,688
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

what michael said..... in a seller's market, it means a bidding war and outrageously high offers that probably won't appraise....I don't play that game....the seller wins nothing on that one.

Jun 17, 2016 12:22 AM
Rainmaker
1,136,737
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

In our area it will never happen.  Wrote a contract top schools, the lady needs to get her 1031 exchange done was nickel and dime a underpriced property. She wanted to bid listed price, I said last two years everything was sold 10%+.  Now I got a multiple counter offer where the seller wanted even more. If we offers 10% above listed or last sold we will got it.

Jun 16, 2016 11:45 PM
Rainer
212,250
Kristen Correa, Broker
Kristen Correa Real Estate & Reedy Creek Realty Services - Keller, TX
I love coffee & real estate. I am out of coffee!

Underpricing will have a different result in different markets.

An already slow market (60+ average DOM) will just sell yourself short, sadly, and can still take some time.

The hottest market will just result in a bid war, which it probably would have resulted in, anyway, because, again, hottest market... 

End: No real true guaranteed benefit to underpricing.

Jun 16, 2016 11:38 PM
Ambassador
4,495,622
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Increased activity and potentially multiple offers and more likely at the market value

Jun 16, 2016 11:31 PM
Rainmaker
443,820
Dianne Goode
Raleigh Cary Realty - Raleigh, NC
Realtor/Broker

I've never done it, but I've seen instances where it seemed that the home was underpriced in order to attract attention, and allow multiple offers to bid the price up.  It's a risky strategy, though.

Jun 16, 2016 11:14 PM
Rainmaker
1,624,472
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

DOM generally, but if the marketing presentation to the public is not in full momentum by the time the home 'hits' the market, then it still can become stale very quickly, then stigmatized.

Jun 16, 2016 11:12 PM
Rainmaker
415,056
Katina Hargrove 352-551-0308
Stake Your Land Realty, Inc. - Eustis, FL
Broker/Owner, GRI,SFR, REALTOR®

Tony and Suzanne,

I have seen underpricing on bank own properties which bring in multiple offers. It depends on the condition and supply in the market area.

Jun 20, 2016 11:56 PM
Rainmaker
907,123
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

In my area - there is no benefit and I would end up not getting the listing

Jun 17, 2016 09:54 PM
Rainmaker
3,912,001
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

It could generate significant interest and multiple offers driving the price up to market value. I've done this a few times and it worked like a charm for specific situations.

Jun 17, 2016 09:53 PM
Rainer
318,363
Melissa Jackson
Century 21 Alliance Properties - Azle, TX
Helping You Make The Right Move

Good tragedy for receiving multiple offers is what I've been told.

Jun 17, 2016 01:51 PM
Rainmaker
1,707,347
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I honor a sellers wishes, if they need to move quickly or in financial trouble then you price accordingly.

Jun 17, 2016 08:22 AM
Rainmaker
1,445,227
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Tony and Suzanne Marriott, Associate Brokers A potential quick sale or a bad marketing strategy.

Jun 17, 2016 05:14 AM
Rainmaker
4,799,356
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Other than a quick sale, I can't think of any.

Jun 17, 2016 04:59 AM
Rainmaker
3,406,206
Brian England
Vacasa - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

It depends on the market, but underpricing a listing will sometimes entice multiple offers, which will ultimately push the sales price nicely above the asking price!

Jun 17, 2016 03:45 AM
Rainmaker
1,362,398
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

In my experience those that need to sell quickly will under price their house.  Offers MAY drive the price up, but there is no guarantee on that.

Jun 17, 2016 03:42 AM
Rainmaker
3,605,442
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

We don't play any games. There is a local agent who does this all the time and never accepts full price offers. We have seen some of her listings "sit" also!

Jun 17, 2016 01:18 AM
Ambassador
5,219,046
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Sometimes is creates multiple offers, bidding and a higher price.

Always good for the agent since it also generates an offer, even if lower than the one the seller wanted.

Jun 17, 2016 12:35 AM
Ambassador
2,546,675
Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

In a hot market, it will stimulate even more bidding wars.   Theoretically.

Jun 16, 2016 11:59 PM