What is the key to getting multiple offers on your property?
Many people assume they have to price their home $20,000 or $30,000 below market value, but that’s not true. What you do have to know, though, is how your home will fit into today’s market. To find this out, you have to do a full equity valuation on your property and a market absorption analysis to calculate its true market value.
The average person in our area does a CMA, or comparative market analysis, to calculate a home’s market value. This is an old-fashioned, real-estate-101 process that typically uses as little as three sold properties to come up with a number your home might be worth.
CMAs offer a little value, but when it comes to knowing the market, the problem with a CMA is you don’t know what happened with those three sold properties. Were they relocation homes? Was one of the properties a distressed home? Was there a divorce involved somewhere?
If you allow a CMA to determine the market value for your home, you’re in trouble. You might get multiple offers, but they’ll likely be for $20,000 or $30,000 less than what your home’s actually worth and you’ll end up leaving money on the table.
On the flipside, you can’t price your home extremely high, either. Regardless of the quality of your home’s marketing, overpricing it will turn off a large segment of buyers and force you to eventually reduce its price. Doing that will also cause buyers to wonder what might be wrong with your home. By the time you do finally reduce your home’s price to where it should’ve been in the first place, you’ll earn 5% to 10% less because buyers will deduct you for the number of days the home spent on the market.
To generate multiple offers the right way, I recommend hiring a professional team of agents like us to help you. We can come into your home, give it a full equity evaluation, and price it appropriately. From there, we’ll use aggressive marketing to attract a lot of offers from qualified buyers within a handful of days your home gets listed.
If you have any questions about getting multiple offers on your property, don’t hesitate to give us a call or send us an email. We look forward to seeing you at the closing table.