If you’re looking to sell your home, you may be aware that we’re in the middle of a “seller’s market” that is commanding high dollars for people just like you. You may have also heard that bidding wars are common now, where multiple buyers clamor over one property offering tens of thousands over the list price and waiving all contingencies.
When you’re a seller, a bidding war is a good thing. But how can you manage it without getting overwhelmed? First step is to hire an experienced real estate agent who can help you navigate the process.
Know How Price Drives Demand
Your agent can help you determine a fair market price when listing your home, taking a look at comps in the general area and making sure you’re not pricing the home too high. Encouraging a bidding war actually involves undercutting your list price to drive up demand. If buyers think they’re getting a deal, they’ll be more inclined to offer over and above the list price.
However, if you price it too low, buyers may wonder what is wrong with the property, or even low ball you.
When demand is high and you want multiple offers, build hype before activating your listing. Your agent can help you by posting “coming soon” posts on social media. Once the house is on the MLS, your agent may decide to defer showings to generate even more hype. After your agent starts getting offers from interested buyers, he or she can let them know that you have strong offers in hand (without giving away details).
Hold a Broker’s Open House
You can ask your agent to host a broker’s open house, which is just for agents representing their clients. Typically held during the day, these exclusive open houses can help spread the word about the listing without opening it up to the general public. You can also hold an open house later, after your home has been properly staged of course.
Set a Deadline
Create a sense of urgency by setting a deadline for offers. This encourages buyers and their agents to only present highest and best offers so no one’s time is wasted.
Encourage buyer competition by overlapping the showing times so interested parties pass one another on the way out and in. This also creates the illusion of a busy schedule that is barely accommodating all the potential buyers.
As a seller, you hold all the cards in this market. A bidding war is very possible on many properties these days. Learning how to manage that bidding war will take strategy and experience to navigate – which is exactly why you have a real estate agent!
Contact Berkshire Hathaway Premier Properties for Help Selling Your Houston Home
Our experienced sellers’ agents can help you manage inevitable bidding wars on your property. Just contact Berkshire Hathaway Premier Properties today at 713-862-0000.