Pricing Way Below Market Value To Create Traffic and Multiple Offers...WORKS!

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Real Estate Agent with Edina Realty

We haven't seen much of this strategy, until recently.  This particular property is being marketed at 1/2 of "market value".  The traffic is steady and offers are coming in.  It will be very interesting to see what this property actually sells for.  This is "bank owned".

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Location:
Minnesota
Tags:
bank owned property

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Rainmaker
230,653
Lina Robertson Jones
REALTOR, Springfield MO Area Homes for Sale
Ozark, Nixa, Republic & Willard Real Estate

We have a couple of agents who are doing this in our market.  The agents have learned who they are and how they work.  A surprisingly large number of agents are beginning to steer their clients away from these homes.  I've also noticed that buyers get very upset.  They have a hard time wrapping their minds around the fact that not only will they have to offer above list price....but they will have to offer significantly above list price.  So far, my buyers aren't willing to play the game, but I continue to give them the choice.

September 20, 2009 10:07 PM
Rainer
28,617
Darla Jensen
Edina Realty

Lina - I understand.  This is the first I've seen this particular "strategy" in my marketplace.  The buyer I'm representing may opt out as well.  Thank you for the comment.

September 20, 2009 10:12 PM
Rainmaker
230,653
Lina Robertson Jones
REALTOR, Springfield MO Area Homes for Sale
Ozark, Nixa, Republic & Willard Real Estate

Darla - one factor in our area is the fact that neither one of these agents will speak with you on the phone.  All offers must be faxed or emailed, and they will only communicate with you by fax or email.  It is absolutely impossible to speak with a live agent.  So, you have no way of knowing how many offers there are, or what the status of any offers are.  Many times, I have written offers on these listings and called and emailed repeatedly over the next week to check the status of our offer, only to see the home show "under contract" in the MLS before I ever receive a response from the agent....IF the agent responds at all. 

I think this concept would work better if you had the right listing agent.  Otherwise, it is just perceived as "fishy" by agents and buyers alike.

September 20, 2009 10:28 PM
Rainer
28,617
Darla Jensen
Edina Realty

Lina:  In this case (actually two more came on the market today with the same strategy), the listing agent is local and has been around for a long time.  She has a good reputation and is being very responsive to phone calls and questions.  I previewed the other two that are new on the market today and traffic was heavy at both properties.  It will be interesting to see how these play out.

September 21, 2009 09:06 PM
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Rainer
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Darla Jensen

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