Should I Underprice My Edmonton Home to Create a Bidding War?

Underpricing home to create bidding war

Deciding whether to underprice your home to attract a bidding war is a strategy that can have both benefits and risks. Here are some considerations to keep in mind:

Benefits of underpricing to attract a bidding war

Increased Interest: A lower initial price can attract more potential buyers and generate a higher level of interest in your property.

Competitive Bidding: When multiple buyers are interested, they may compete with each other, potentially driving up the final sale price above market value.

Faster Sale: An attractive initial price can lead to a quicker sale, reducing the time your property spends on the market and the inconvenience of showing your home.

Risks of underpricing

Leaving Money on the Table: If the final sale price doesn't escalate as expected, you might end up selling your property for less than its market value.

Buyer Distrust: Some buyers may be skeptical about underpriced listings, thinking there's something wrong with the property, which can deter serious buyers.

Uncertainty: You can't guarantee a bidding war will happen. Some buyers might take the lower price at face value and not offer more.

If you decide to underprice your home to attract a bidding war, it's essential to carefully consider the local real estate market conditions, work with a knowledgeable Edmonton real estate agent, and set a price that is attractive but not too low. You should also be prepared for the possibility that the strategy might not work as planned. It's a tactic that can be effective in the right circumstances but carries some risks, so it's not suitable for every situation. Your priorities in selling your home may dictate if this is the right approach to take. For example if it’s important to have your home sold quickly this may be a good approach, however, if it’s more important to make sure you are getting fair market value for your home this may not be the best approach.

Looking for more advice when it comes to selling your home? Read our blog post on the benefits of staging your home by clicking here! 

Have questions about selling? Our team would love to answer all of your questions. Call us today at 780-462-5002 or e-mail Dwight Streu directly: 

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