This is an image of the National Association of Realtors Pricing pyramid.
What it means is that as you go up in price the probablity of find a buyer goes down.
As you become overpriced your buyer pool shrinks. Perhaps someone buying a house so that a relative can live next door will over pay.... but if the person is not buying with a large slug of cash the buyers lender will not let them pay much more than their appraisal anyway.
As you go under the fair market value you will set the investor pool in action so you will get offers relatively quickly.
If you go 20% below value you will probably get an offer within 24 hours.
Our experience selling our own investments and selling dozens of short sales proved to us that if you price your property a little low you have a very good chance of getting multiple offers. Frequently, we even have offers pay through the our slighly low list price to Fair market value or more.
I can not tell you how many times I had to tell Realtors in my office to the lower the price of their short sales.
I said look there are thousands of people on the internet with IDX alerts. When you price gets below their fair market value price - the phones start ringing off the hook. At first they did not believe me.
Later they just said -- lowered the price - phones started ringing.
Getting offers is all about price and showings.
If you do not care about your net lower the price.
If you care about your net - make sure your house shows well and offer buyers agent a higher than typical commission.... and let them know about it.
We will discuss that pricing strategy in the future.
Carlsbad and San Diego real estate prices.
how to sell a short sale properly
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