I recently listed and sold a home for $60k more than asking price. There were five offers, and some of them included escalating clauses, stating that the buyers would beat any other offer by so many dollars up to a specific dollar amount.
With the high demand for local area homes, it is of utmost importance to price your home so it sells for the highest possible price. I suggest that you strategically price your home to encourage multiple offers.
That might mean not overpricing your home, which could risk turning off buyers who are ready to make at or above list price offers. The better strategy might be to price your home at fair market value based upon comparable homes for sale and homes that have already sold.
Savvy real estate agents know how to strategically price homes.
In a fast-moving market it is also important to consider comparable homes that are under contract. While we do not know the agreed-upon prices of these homes that have not yet closed, we can get some ideas and insights by reaching out to those agents who put these homes under contract.
Over the past few months, I have seen agents pricing homes above market value (but not too much above), which appears to be a solid strategy in a seller’s market to obtain multiple offers and encourage bidding battles.
On the other hand, this being the Lowcountry with lower property taxes and good value homes, I would suggest pricing high to see if any offers come in. In less than a week or so, either you will have some offers or the market will tell us to lower the price a bit.
It has been my experience that prospective home buyers from up North feel that they are getting a good deal when they shop online for our Lowcountry homes for sale. And with the inventory as low as it is in most Hilton Head Island and Bluffton communities, they are more than ready to make attractive cash offers on what they see.
Larry Stoller is a broker and Realtor with Real Estate Five of the Lowcountry. Larry@RealEstateFive.com, RealEstateFive.com, SunCityOpenHouses247.com