{"id":8522,"date":"2022-07-31T09:56:27","date_gmt":"2022-07-31T14:56:27","guid":{"rendered":"http:\/\/resourceful-teal-lizard.rotrealty.com\/rockproperties\/?p=8522"},"modified":"2022-07-31T09:56:30","modified_gmt":"2022-07-31T14:56:30","slug":"how-home-sellers-can-start-a-bidding-war","status":"publish","type":"post","link":"https:\/\/resourceful-teal-lizard.rotrealty.com\/rockproperties\/how-home-sellers-can-start-a-bidding-war\/","title":{"rendered":"How Home Sellers Can Start A Bidding War"},"content":{"rendered":"\n

In a seller\u2019s market like today\u2019s, multiple offers are common. This means more options, and more money, for home sellers. Under these conditions, bidding wars<\/a> often happen organically, driving the sale price high above asking. But is there a way to jump-start the process? And should you?<\/p>\n\n\n\n

Do low list prices encourage bidding wars?<\/h2>\n\n\n\n

Deliberately listing your home for slightly lower than its fair market value<\/a> is one tactic that can help spark a bidding war. Lower prices can incite increased interest in a home and competition among buyers.<\/p>\n\n\n\n

When it comes to determining listing price<\/a>, \u201cprice your home to be in the market, not just on the market,\u201d says Kimberly Jay, a real estate agent with Compass in New York City. \u201cThe price of the home should be on the lower side, not the higher, so that more buyers will view it as a compelling choice and quickly take a look.\u201d<\/p>\n\n\n\n

Jonathan Lahey, an agent with the Fine Living Group at EXP Realty in Rockville, Maryland, agrees. \u201cPricing a home lower creates a perception of value in the eyes of the buyer, attracting them to come and see the house in person,\u201d he says. \u201cThe strategy that can create the most demand for the house is the strategy that will deliver the highest price.\u201d<\/p>\n\n\n\n

But that strategy doesn\u2019t come without risks. It\u2019s important not to go too low \u2014 you don\u2019t want to list your home for significantly less than you are prepared to accept. After all, there\u2019s no guarantee of a bidding war to drive the price higher.<\/p>\n\n\n\n

Bidding wars did become much more common in the seller\u2019s market<\/a> of the past several years, especially with inventory at record lows. \u201cBut, with interest rates above 6 percent, homes are starting to sit longer on the market,\u201d says Jay. With lessened demand, bidding wars become less common, creating the possibility that your low list price will generate equally low offers.<\/p>\n\n\n\n

A bidding war is also time consuming, and can be emotionally exhausting for hopeful buyers. Many are intimidated or otherwise put off by the process. As a seller, it\u2019s important to consider whether the potential reward is worth the risk.<\/p>\n\n\n\n

Other ways to jump-start a bidding war<\/h2>\n\n\n\n

In exceptionally hot local real estate markets, tactical strategies may not even be necessary. Walter Rock, broker and owner of ROCK Properties in the Austin, Texas, area, jokes that \u201cin Austin, putting your house up for sale is usually all it takes to start a bidding war.\u201d<\/p>\n\n\n\n

For sellers outside the Austin market, there are still many options to help give your listing a nudge. Here are a few from David Greene, a broker with Keller Williams in the San Francisco Bay Area and co-host of the BiggerPockets real estate podcast.<\/p>\n\n\n\n