Which is a better strategy on the mls? list low or high?

6 Replies

Experienced flippers, what's your best strategy on the mls? Do you list it below the market price? In order to drive multiple showings and bids ?  What happens if you fail to attract multiple bids then?

Or do you list it on the high end on your ARV, then do small drops after 21 days ? so that you don't leave money on the table.

I'm a little discouraged with my current listing, but so far my strategy has been listing on the high end. I had mixed results. 

I think it really depends on your market. In San Francisco, it doesn't matter what you list it at, but you're going to want to list it a little bit lower than the market so that people see the property and all the properties in the bay area sell for much higher than list price.

In Memphis where we do some deals, we list the property for our highest amount, because the mentality of many buyers is to make offers below list price. 

Originally posted by @Antoine Martel :

I think it really depends on your market. In San Francisco, it doesn't matter what you list it at, but you're going to want to list it a little bit lower than the market so that people see the property and all the properties in the bay area sell for much higher than list price.

In Memphis where we do some deals, we list the property for our highest amount, because the mentality of many buyers is to make offers below list price. 

 Thank you. I think a big part of where I sell is also based on the season. 

The couple of H&B listings I had was in the spring season, and the ones that sat for a while was in Fall / winter. Unfortunately, the houses are in different suburbs here so it's difficult to compare apples to apples.

Originally posted by @Chris T. :
Originally posted by @Antoine Martel:

I think it really depends on your market. In San Francisco, it doesn't matter what you list it at, but you're going to want to list it a little bit lower than the market so that people see the property and all the properties in the bay area sell for much higher than list price.

In Memphis where we do some deals, we list the property for our highest amount, because the mentality of many buyers is to make offers below list price. 

 Thank you. I think a big part of where I sell is also based on the season. 

The couple of H&B listings I had was in the spring season, and the ones that sat for a while was in Fall / winter. Unfortunately, the houses are in different suburbs here so it's difficult to compare apples to apples.

 Very true. Seasonality can play a big role in that as well. In CA we don't have to deal with that lol.

In a typical market and for a typical listing, I like to list about 5% above market value in a hot market (which most are these days).

I prefer to list at the higher end. My last house I listed it $20,000 over what I planned to get ($319,900) and ended up getting a full price off the first day. thought if we had the property listed and had to drop it would buy some time before moving... that didn't work.

I have heard the "list low" and offers will come in and drive the price up where it needs to be, however idk that I would try that out. You really can't up the asking price if you find your low ask, only brings in low offers.

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