Throughout the country, limited housing inventory has set the stage for increased buyer competition. How can sellers take advantage of the current climate? Here are six strategies you can use to ignite a bidding war on your listing.
Price your home below market value. Many sellers have concerns about pricing their homes too low; however, this strategy tends to result in multiple showings within the first several days. This can drive the perfect multiple-offer scenario that may ultimately yield a price above listing. Even if you price your home only five percent below market, you can trigger a stampede of interested buyers, depending on the available inventory and market conditions in your area.
Set a deadline for any and all offers. The average home buyer is very concerned about missing out on a dream home. By setting a deadline, you can motivate procrastinators and create multiple-offer scenarios. That said, you should only use this strategy when you are sure your property is priced right, and you have numerous showings lined up. You can then notify prospective buyers that you are in receipt of multiple offers and would prefer that all interested parties submit their highest and best offers by a certain time and date.
Build up interest. You can create excitement with prospective buyers by putting your property on several listing services but not showing it until a specified open house date. Use the suspense and anticipation of a showing to your advantage. Savvy sellers will often show compelling photos of their homes, while restricting access until a specified date when multiple people show up for the viewing.
Set the perfect stage. To attract multiple offers, your house needs to look its best. Even if you have a knack for interior design, it’s generally best to hire a professional who is more familiar with popular design trends in your local market. There are a lot of ways to accentuate a property’s best features and downplay its imperfections. A staging professional will be able to leverage industry knowledge to help you create a setting that will raise eyebrows for all the right reasons.
Create a sense of urgency. In the real estate industry, interest begets interest. With this in mind, you should try your best to create consistent, overlapping foot traffic at your open house. If there are over a dozen people browsing the property at one time, a serious buyer is more likely to increase his or her offer based on the perception of greater competition. Try to schedule your open house for only two hours on a Saturday or Sunday about a week or two after you list a property. This will ensure that more people have a chance to learn about the home in advance of the showing and can plan a visit during that time.
Plan ahead. Agents can help their clients get top dollar for their homes by encouraging them to plan ahead so they aren’t in a hurry to move. Tight timelines can force agents to hurry through the pre-marketing and staging process. They can also cause a seller to anxiously accept the first offer that comes along and miss out on a potential bidding war opportunity.