Pricing Under Fair Market Value

Buyers tend to be polemic in their views. You rarely hear the middle ground.

A listing is either over priced or a great deal. I rarely hear anything else.

Today I showed a home priced almost 15% below what the comparables suggest. After 3 days on the market 6 offers at or above asking and 5 of those are cash.

By the time the negotiation process works it’s way out the owner will no doubt have a great price and the deal will be done all within a week.

So many sellers think of pricing 15% above asking to get offers around fair market value. You may get an offer but you won’t get multiple ones.

There’s something about human nature that just can’t resist getting involved in a feeding frenzy. Once something is wanted by multiple people all bets are off. Auctioneers have used this technique for years.

Pricing under market value takes confidence but it certainly can be effective. Especially at lower price points and in current market conditions.