851,242
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.
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Nina Hollander, Broker
Charlotte, NC
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Lise Howe
Washington, DC
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Pete Xavier
Pacific Palisades, CA
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Will Hamm
Aurora, CO
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Bob Crane
Stevens Point, WI
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Sam Shueh
San Jose, CA
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Tony and Suzanne Marri...
Scottsdale, AZ
4,936,683
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.
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Nina Hollander, Broker
Charlotte, NC
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Tony and Suzanne Marri...
Scottsdale, AZ
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Katerina Gasset
Provo, UT
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Pete Xavier
Pacific Palisades, CA
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Will Hamm
Aurora, CO
519,324
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.
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Nina Hollander, Broker
Charlotte, NC
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Tony and Suzanne Marri...
Scottsdale, AZ
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Katerina Gasset
Provo, UT
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Pete Xavier
Pacific Palisades, CA
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Will Hamm
Aurora, CO
1,027,602
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.
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Nina Hollander, Broker
Charlotte, NC
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Katerina Gasset
Provo, UT
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Pete Xavier
Pacific Palisades, CA
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Will Hamm
Aurora, CO
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Tony and Suzanne Marri...
Scottsdale, AZ
4,572,183
It depends. On market conditions. On the particular seller. On timing.
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Nina Hollander, Broker
Charlotte, NC
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Katerina Gasset
Provo, UT
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Barbara Todaro
Franklin, MA
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Tony and Suzanne Marri...
Scottsdale, AZ
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Susan Emo
Kingston, ON
2,781,173
Instant response on the listing is the primary result
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Nina Hollander, Broker
Charlotte, NC
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Tony and Suzanne Marri...
Scottsdale, AZ
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Richie Alan Naggar
Riverside, CA
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Pete Xavier
Pacific Palisades, CA
5,005,642
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.
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Nina Hollander, Broker
Charlotte, NC
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Michael Jacobs
Pasadena, CA
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Will Hamm
Aurora, CO
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Tony and Suzanne Marri...
Scottsdale, AZ
1,622,432
Multiple offers, more traffic, and hopefully a much higher offer.
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Nina Hollander, Broker
Charlotte, NC
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Tony and Suzanne Marri...
Scottsdale, AZ
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Pete Xavier
Pacific Palisades, CA
45,957
To shorten time on market and encourage multiple offers.
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Nina Hollander, Broker
Charlotte, NC
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Tony and Suzanne Marri...
Scottsdale, AZ
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Pete Xavier
Pacific Palisades, CA
3,988,007
If the selelr needs a quick sale and closing this would get it done. Sometimes time is money.
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Nina Hollander, Broker
Charlotte, NC
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Will Hamm
Aurora, CO
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Tony and Suzanne Marri...
Scottsdale, AZ
3,340,443
"At" or a little below gets people qualified to buy...Over...misses the best part of the market.
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Nina Hollander, Broker
Charlotte, NC
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Pete Xavier
Pacific Palisades, CA
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Tony and Suzanne Marri...
Scottsdale, AZ
225,526
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.
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Will Hamm
Aurora, CO
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Tony and Suzanne Marri...
Scottsdale, AZ
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Susan Emo
Kingston, ON
2,182,552
The EBAY effect of competing bidders ! Very low DOM !
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Nina Hollander, Broker
Charlotte, NC
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Tony and Suzanne Marri...
Scottsdale, AZ
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Michael J. Perry
Lancaster, PA
1,157,785
Some do this in the hopes of generating additional interest in their property so that they can hopefully receive multiple offers.
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Nina Hollander, Broker
Charlotte, NC
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Will Hamm
Aurora, CO
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Tony and Suzanne Marri...
Scottsdale, AZ
921,504
Price alters the time line.
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Pete Xavier
Pacific Palisades, CA
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Will Hamm
Aurora, CO
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Tony and Suzanne Marri...
Scottsdale, AZ
7,836,134
A quicker sale.
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Nina Hollander, Broker
Charlotte, NC
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Tony and Suzanne Marri...
Scottsdale, AZ
2,362,948
stimulating a bidding war and getting stronger and higher offers?
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Nina Hollander, Broker
Charlotte, NC
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Tony and Suzanne Marri...
Scottsdale, AZ
900,128
Greater traffic, which means better chance of having someone fall in love with the place and start bidding.
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Nina Hollander, Broker
Charlotte, NC
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Tony and Suzanne Marri...
Scottsdale, AZ
3,986,258
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.
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Nina Hollander, Broker
Charlotte, NC
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Tony and Suzanne Marri...
Scottsdale, AZ
2,224,473
In some market this could result in multiple offers that might drive the price up higher.
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Nina Hollander, Broker
Charlotte, NC
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Tony and Suzanne Marri...
Scottsdale, AZ
864,658
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.
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Nina Hollander, Broker
Charlotte, NC
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Tony and Suzanne Marri...
Scottsdale, AZ
3,043,262
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.
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Nina Hollander, Broker
Charlotte, NC
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Tony and Suzanne Marri...
Scottsdale, AZ
69,794
Days on market and most likely higher multiple offers to choose from.
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Will Hamm
Aurora, CO
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Tony and Suzanne Marri...
Scottsdale, AZ
5,583,278
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.
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Will Hamm
Aurora, CO
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Tony and Suzanne Marri...
Scottsdale, AZ
1,239,901
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.
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Will Hamm
Aurora, CO
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Tony and Suzanne Marri...
Scottsdale, AZ
212,500
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.
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Will Hamm
Aurora, CO
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Tony and Suzanne Marri...
Scottsdale, AZ
5,049,183
Increased activity and potentially multiple offers and more likely at the market value
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Nina Hollander, Broker
Charlotte, NC
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Tony and Suzanne Marri...
Scottsdale, AZ
444,170
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.
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Will Hamm
Aurora, CO
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Tony and Suzanne Marri...
Scottsdale, AZ
1,725,996
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.
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Will Hamm
Aurora, CO
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Tony and Suzanne Marri...
Scottsdale, AZ
466,767
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.
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Tony and Suzanne Marri...
Scottsdale, AZ
989,652
In my area - there is no benefit and I would end up not getting the listing
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Tony and Suzanne Marri...
Scottsdale, AZ
5,104,931
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.
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Tony and Suzanne Marri...
Scottsdale, AZ
321,564
Good tragedy for receiving multiple offers is what I've been told.
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Tony and Suzanne Marri...
Scottsdale, AZ
1,712,676
I honor a sellers wishes, if they need to move quickly or in financial trouble then you price accordingly.
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Tony and Suzanne Marri...
Scottsdale, AZ
1,466,207
Tony and Suzanne Marriott, Associate Brokers A potential quick sale or a bad marketing strategy.
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Tony and Suzanne Marri...
Scottsdale, AZ
4,800,082
Other than a quick sale, I can't think of any.
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Tony and Suzanne Marri...
Scottsdale, AZ
4,693,319
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!
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Tony and Suzanne Marri...
Scottsdale, AZ
1,502,998
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.
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Tony and Suzanne Marri...
Scottsdale, AZ
4,333,761
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!
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Tony and Suzanne Marri...
Scottsdale, AZ
6,393,404
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.
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Tony and Suzanne Marri...
Scottsdale, AZ
2,684,109
In a hot market, it will stimulate even more bidding wars. Theoretically.
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Tony and Suzanne Marri...
Scottsdale, AZ