How to create a bidding war when selling your home
Apr 29, 2013 at 4:07 PM
Do you remember hearing stories in the past about people who sold their homes to the highest bidder as a result of a bidding war? Shortly thereafter, those stories were replaced with tales of home sellers who took a beating on the sales price of their homes. These stories of loss left many home sellers feeling afraid and hopeless. But there is good news for those who are thinking about selling their real estate; in certain markets, bidding wars are making a comeback.
Even though market values have not rebounded back to “pre-crash” price points, sales prices are on the rise. But equally important is the fact that inventory is shrinking, which means sellers have been experiencing a re-emergence of the bidding war. So how can you foster a bidding war if you are trying to sell your house? While there is no guarantee, following the guidelines below will give you a better chance at selling amid a bidding war.
Make it Irresistible
With all the rapid changes occurring inside the housing industry, it has never been more important to hire a qualified, experienced agent who knows how to navigate the various situations you will encounter while your home is on the market. Work closely with your broker to make your listing irresistible.
Set an Enticing Price
The single-most important thing you can do to increase your chances of creating a bidding war is to price your home correctly, so be realistic. Pricing too high can prevent people from even looking at your home, while pricing too low can prevent you from selling for optimum profit. With your agent’s help, you can find a happy medium – that magical price that matches your home completely. Your agent can run market analysis reports to identify your specific window of pricing opportunity. If you set an asking price within that window you will attract the maximum amount of potential buyers, without sacrificing your highest possible asking price.
Create an Alluring Appearance
Once you’ve settled on the best asking price, the next item of concern is creating an impeccably clean house that is staged to perfection. It’s surprising how many homes on the market are not well-kept. Your house will stand out among the crowd if you take this part seriously. Not only will your home sell faster, but a clean and well-staged house carries a much higher value and will sell for more money than an unkempt property. We live in a very visual society so if you pay special attention to the visual marketability of your home, buyers will take notice and you will sell for a higher price.
Starting a bidding war is not an exact science and like I said before, there is no guarantee you’ll be able to create that situation with your listing. But with the present low inventory, if you focus your efforts on the above items, you may be able to stir up enough interest to entertain multiple offers; at the very least you can anticipate that your home will not remain on the market for long.
EDITOR'S NOTE: This story was written by Monte Mohr, who has sold over 2,500 homes, making him one of America’s top Realtors for the last 25 years. This experience has given him a unique perspective on the Nashville real estate market where he can be found at http://www.tennesseedreamhomes.com. He is also a regular contributor of real estate advice to Nashville’s NBC affiliate station, WSMV Channel 4. To learn more about Monte Mohr’s experience as a real estate agent, to get free advice about your biggest real estate challenges or to request an interview, please contact him at Info@TennesseeDreamHomes.com