When it comes time to sell, there’s nothing more exciting than receiving multiple offers from serious buyers who are willing (and able) to pay above asking.
As an investor, knowing how and why bidding wars occur is invaluable information for maximizing profits and growing your income exponentially.
That said, while it’s true that high demand is key for creating a bidding war, there are also several strategies you can employ as a seller to increase the chances of receiving multiple, competing offers.
3 Ways Sellers Can Inspire A Bidding War
1. Create A Profile Of Your Ideal Buyer
Buying a home is as much an emotional decision as it is a practical one; understanding how to market the property in a way that speaks to your buyers’ personal wants and needs is key for creating sufficient demand to spark a bidding war.
Work with your Realtor to identify the types of buyers most likely to be interested in your house. What does their budget look like? Are they on a tight timeline? What type of lifestyle do they want to create, and how can your property contribute to these goals?
Essentially, your objective is to create an online listing that makes your ideal buyer feel as though it was written with him or her in mind.
2. Make The Property Welcoming And Inviting
Never underestimate the power of curb appeal. Even if you don’t have room in your budget for professional landscaping or lawn care services, there are plenty of affordable DIY projects you can complete in no time to boost curb appeal and attract more buyers.
That said, the home’s exterior is just the beginning; you’ll also want to make sure the interior lives up to buyers’ expectations and makes an equally strong impression.
Prepare the property for showings by deep cleaning each room, removing any clutter, dust, and other distractions that buyers could potentially find off-putting. Let in fresh air in between showings to ensure there are no unpleasant odors, and make sure each room has sufficient lighting, so buyers can fully appreciate the space.
If you intend to stage the home, do so sparingly; too much furniture or decor can quickly make buyers feel cramped. Generally speaking, it’s only necessary to stage the home’s most prominent rooms, which are typically the kitchen, dining area, living room, and master bedroom. Of course, if your budget allows, hiring a professional stager is a great way to ensure each room is as aesthetically pleasing as possible.
Remember, when you’re trying to start a bidding war, the goal is to make buyers fall in love with the home, and presentation will always play a major role.
3. Choose A Conservative Asking Price
This may sound counter intuitive, but keep in mind, it’s not uncommon for serious buyers in a hot market to offer more than the listing price—especially when there’s reason to believe the property in question is worth more than it’s listed for.
With easily-accessible platforms like Zillow, Redfin, and Realtor.com, today’s buyers can quickly research any neighborhood at any given moment to find out how property values in the area compare. That said, setting your asking price too high is a surefire way to limit the number of offers you’ll receive. Conversely, when you list your property just below market value, savvy buyers are more inclined to make you a generous offer.
Work with an experienced Realtor in your neighborhood to determine the best strategy for pricing your house to sell.
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