Can You Spark a Bidding War on Your Listing?
August 27, 2012
Bidding wars are increasingly being reported across the country as buyer demand increases and home inventories shrink. Some sellers are trying to spur multiple bids on their properties by purposely underpricing the home.
In some markets, it’s paying off, real estate professionals say.
Douglas Rill, a broker with Century 21 America’s Choice in West Palm Beach, Fla., told the Sun Sentinel that a lender informed him to underprice a foreclosed home for $37,600. While the home had a leaky roof, among other problems, comparable sales in the neighborhood would have shown the home valued more at $50,000, Rill says.
"Do you know what that does to my cell phone?" Rill told Sun Sentinel. "It blows it up." More than 70 buyers toured the home and it eventually sold for $51,000.
Other real estate agents say that more sellers should consider listing their home at the end of the market value. It can prompt more buyer attention if buyers believe they’re getting a good deal, they say.
Source: “Multiple Offers Possible in Tight Housing Market, Experts Say,” Sun Sentinel (Aug. 23, 2012)
Updated: July 14, 2020