Home Selling Advice - Pricing Below Market Value
Listing a Home Below Market Value
When the real estate market is hot some Realtors / sellers will actually price the property below market value. The idea behind this is to draw multiple buyers into making offers, which will then develop into a multiple offer situation. They are hoping that the end result will be an offer is actually greater than the value they would have got if they had priced the home at market value.
This technique sometimes works and sometimes it backfires on the seller. If you only get 1 offer then the seller may finish up having to accept that offer.
There is also something else the seller must be aware of. A normal contract written with a Realtor says that if you get an offer and meets the criteria specified in the contract and you refuse to sell then the Realtor is still entitled to their commission. This is also true for the buyer side so you could finish up paying both commissions and not sell your home.Return to Home Selling Advice