How to Get Multiple Offers in 5 Simple Steps
With home sales staying strong nationwide, sellers are getting excited about the idea of a big sale. But for all of the buyer activity, houses either get snatched up the moment they hit the market or...they seem to languish on the market without an offer in sight.
All sellers aspire to be on the quickly snatched-up, multiple-offer end of the spectrum. Fortunately, there are steps you can take to move your listing into the multiple offers zone.
1. Price it aggressively.
It's a fact that a "low" starting price gets people excited about the possibility of scoring a great value, whether they're bidding on an antique on eBay or on your home. It's that same, low-price-seeking excitement that will cause many more buyers to show up and view your home than if you list at a higher price point.
In real estate, more showings are an inescapable prerequisite to more offers.
This doesn't mean you have to give away the goods, just that sellers who get multiple offers price their properties from a retailer's or auctioneer's perspective. I'll work with you analyzing comparable sales data – as recent and as comparable as possible – and then work on the ideal price to list your home as a slight discount, not at a slight premium, compared to the recent neighborhood sales. That will get buyers' attention.
2. Give buyers and brokers ample access.
Put yourself in your target buyer's shoes. Say there are 40 homes on the market which meet their specifications, in terms of bedrooms, bathrooms, square footage, price range, and location. And 25 of those top the list. But they only have time to see 8 today. If the buyer's broker can't get into your house today because you have so many restrictions around showing it, your home could very well miss out on a showing with this qualified, motivated buyer.
It might seem overly simple, but if you want multiple offers, make sure your home is available to be shown every day that it is on the market. Inconvenient? Yes. Frustrating? Sometimes. A challenge to keep the place clean at all times? I understand. But consider your priorities and what is at stake. If getting top dollar for your home is at the top of your priority list, then you have to be ready and willing to deal with the inconvenience involved in churning up multiple offers and getting your home sold.
3. Make it beautiful.
Really, really beautiful. Homes that get multiple offers are those with a look, feel, and function that can be described in one word: enviable. If you want multiple offers, you need multiple buyers to fall deeply in love with your home – enough to bid above the listing price and enough to compete with others for it.
To generate multiple offers, prepare your home by ensuring it is immaculately cleaned from the inside out – closets, garages and crawl spaces included, de-cluttered and impeccably staged – this includes fresh paint, carpet and other things that need replacing in perfect working order – make sure doors, windows and systems buyers test (stoves, faucets, heating and air conditioning) are not creaky, wonky, leaky or otherwise dysfunctional.
If you've done any major home improvements or replaced any appliances or systems lately, market that! Show off how immaculate, and move-in ready your home is now – and tout its great working condition for the long run.
4. Expose it to the market.
An offer the very first day your home goes on the market may sound like a dream come true but many buyers can't get out to see homes that quickly. Some are unable to house hunt except on the weekends. Part of my plan to get you multiple offers is to expose the home to the market long enough for target buyers to see it and get their offers on the table.
Setting a strategy for market exposure lets buyers know that they will be able to get to the property and get their offers considered, while still creating a sense of urgency. This strategy not only includes multiple open houses and showings, but also online, social media, and email marketing.
5. Be ready to course correct.
Is your home one of the houses that has been sitting on the market for months without any action? Do not fret – there is still hope. In real estate, there's something insiders call the Sweet Spot Phenomenon, where an overpriced home sits on the market for months with no bites, sometimes even through multiple price reductions. Finally, the seller lowers the price to the 'sweet spot' and it generates multiple offers and sells for more than the final list price.
There are listings whose sellers net more than they expected because they were willing to revise the list price in response to market feedback (no showings, no offers or lowball offers).
If your home has been lagging on the market, let's talk about what sort of price reduction strategy is likely to maximize your net sale price.
Hint: many more buyers are attracted to reductions below a common online search price point limit. For example, you might draw more buyers, and ultimately more money, with a price reduction from $1,499,000 to $1,474,000 because there is a set of buyers who may be cutting their search off at $1,475,000 – exposing your home to a whole new group of prospects.