No matter what condition the property is in, no matter where the property is located, no matter what economic situation the real estate market is in, every property will sell at the right price no matter what! It always boils down to one thing and one thing only, the price!
We all have heard someone brag that they sold their property in 1 or 2 days. That statement, makes some people think that the property may have been sold to cheap? If there was a Buyer that jumped on the deal and offered full price, you must believe there were others that would have paid more. Using the traditional sales method, a Seller has a set price that limits the upside and a Seller will never know how much money was left on the table.
Even if there is a so called “Bidding War”, a Seller will never know how much higher a Buyer may have gone. Often, Buyers do not even want to participate in a Bidding War simply because they feel that they are being wedged or used to get another Buyer to increase their offer. In addition, Buyers also do not trust that the Seller (or the Sellers Agent) is being honest or if there is in fact another bonified Buyer making an offer. They are unwilling to play the game and nobody wants to feel like that got taken advantage of.
So, how do you know you have priced the property correctly? The truth is you don’t. Remember, no two properties are exactly alike, and comparable property analysis only goes so far in determining the value. What a property sold for last year or last month does not determine what the market will bear today or next week. Many people rely on their Agent to determine the offering price, but consider that some Agents have their own agenda and want to sell your property quickly so they can collect their commission.
You must also consider if the Agent really have a clear understanding of the market and the value. If the property is priced too low, it will sell quickly, however, the Seller will not get true market value. If the property is priced too high, it will sit on the market costing the Seller thousands of dollars in carrying cost, time and lost opportunity. The simple fact is the longer a property sits on the market, the less desirable it becomes which drives down the sale price.
Open Competitive Bidding Will Determine True Market Value
The best way to determine the value of real estate is by real-time, open competitive bidding….an Auction! The Buyers bids will determine the true market value of the property at that very moment. An Auction creates a fair playing field for every Buyer and the open competitive bidding is totally transparent to all. An auction creates urgency and forces Buyers to bid against other Buyers in real-time which will drive the sale price up. With an auction, a Seller does not have to rely on an Agent to determine the sale price because the Buyers high bid delivers the answer. Most important, unlike the traditional sales method, Buyers who participate in an auction have posted a substantial deposit and are there to buy the property for cash, with no contingencies, in “as-Is” condition and settle with 30 days of the auction.
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The real estate market is ever-changing. A Buyers’ market can become a Sellers’ market overnight. Real estate values are often determined by the season, the economy, and major events taking place locally, throughout the region and around the world. We’re here to guide you though the process and figure out which method is best for you.