So, I read an interesting article about quickly selling property listings that I want to share with you today. The principle behind the article is very logical, and the theory is time tested and proven.
The idea is simply this… Quickly selling a property by creating your own real estate auction. The way you do this is by setting the listing price of a property so low that in essence you create a bidding war. The idea is logical – basic laws of supply and demand. When an asset is undervalued, the market corrects the pricing to reflect what a fair market value is.
A Realtor in Colorado is using this principle to her sellers' advantage. She is lowering the price of some of her listings so low that she is creating instant demand. She says that oftentimes those properties are selling for more than their list price because the price is so low that buyers are eager to see the property and they create a competitive bidding war among themselves.
First of all, I love the idea! Secondly, there is no way I'm going to question the very proven economic principle of supply and demand. But I do have my doubts about this one. In this day and age when property values are declining and sellers are already underwater in their homes, I believe it will be hard to find a seller who is willing and able to consider this option when pricing their home. One mindset that has not changed in the 18 years that I've been in the industry is that sellers always want as much as they can get for their property. Most sellers are not going to agree to list their property for tens of thousands, or hundreds of thousands, of dollars less than what the already deflated true market price is on a property just to HOPEFULLY create demand for their property. My last doubt about the article is this – most sellers are trying to create demand of just one buyer and they are having a difficult time with finding one. In the majority of markets today, creating the demand for just two buyers is nearly impossible.
I know this idea will work with the right property, the right seller, and the right market. It is probably an idea that you want to put in your back pocket and pull out for that perfect scenario. When you do, I'd love to hear how well it worked or didn't work for you.
So, with all of that being said, you know where I stand. I definitely want to hear your opinions of the strategy the agent in Colorado is employing as well as my thoughts in the two paragraphs above. Leave your comments below! Happy selling!