I am not a realtor but I have sold my own properties in the past. I am selling a property in southern California and right now it is a sellers market. SFR's are selling above asking price. How can I write up an offer that might be made but will allow me to keep it on the market for a potential bidding war? What is the language that would be used? Would it be better to list it below market value to entice bidding.
I'm not an agent in CA so you may want to wait for their advice but personally I would price it "at" the market price and not below. If it's a seller's market and houses are moving quickly that should get you offers anyway.
As far as language goes the one thing I'd put in the listing is that "offers won't be reviewed until x days on market". Basically you want to give enough people the chance to see the house and get an offer in instead of just accepting the first one. If there are going to be multiple offers this gives it enough time to see if people want to write on it. I'd probably use 3-4 days as the "x".
I agree "at market" is the place to price. I would think you would want to list on a Wednesday or Thursday and review offers on the Monday or Tuesday. Generally Open Houses primarily benefit agents, but having one couldn't hurt with exposure. Before you list, I would recommend contacting some realtors and let them know you are putting the house on the market. You could even hold an agents-only open house before it goes on the market.
I think with a full co-op and good price you should be competitive with most houses on the market. However you go about listing your house, make sure it gets in the MLS.
@Kathie Riedel I like Bill's advice about indicating in your ad that offers won't be reviewed until a certain date. I'd personally give it at least a week or two to get the most exposure. IMHO, I'd also list it a minimum of 5-10% below market if you want to have a bidding war. If you're wrong about market value and price it too high, you will most likely not have a bidding war and you'll lose the value of a fresh listing that just hit the market. If your property is in a sub-market that's truly a seller's market, pricing it low will bring the buyers out quickly.
@Kathie Riedel What city is the house located in? If you're going to list it at below market value to try to entice a bidding war, be ready to sell it for that price if someone brings in the only offer, that meets all the terms of the listing.
List it at or below market.
Quote @ Bill wallace
"As far as language goes the one thing I'd put in the listing is that "offers won't be reviewed until x days on market""
I would do 7 days max until contract are and when i get offers over asking price. I would have my agent go back to the offers and let them know that there a multiple offers above asking price and were asking for your highest and best.
You can always counter the highest and best contract to get the most favorable terms.
Please ask the Realtor who is selling it for you. In their MLS they might an option that allows them keep the property on the market to get more offers, they accept backups, while negotiation is going through or escrow is going on.
@Morry Eghbal. There is no realtor involved unless we hire one to handle paperwork only. It would not be on the MLS.
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