Have you Chitlins noticed that there is a trend toward pricing homes really, really low in order to get lots of offers? It started with the short sales and bank owned, but it is now pretty wide spread.
I call this event pricing, the sale of this home is a happening- an event!
My new listing at 553 Olmsted is event priced and I thought you guys might like to get a behind the scenes look at why the seller choose this strategy and where the opportunity is for everyone.
But first, the new listing:
553 Olmsted, Glendale, Ca 91202
Offered at: $599,000
3 bed, 2 bath
Master Suite, Family Room, Dining Room and large covered patio
Central AC, Copper Pipe, Bamboo Floors
1809 sf house, 7190 sf lot, according to tax assessor
Open August 1 & 2, 2-5pm
Ok. On to the “behind the scenes” stuff.
Obviously, this strategy gets a quick sale, but that is just the start. Event pricing encourages the buyer to think about the reasons they want to buy rather than their fears and objections. It also allows the seller to find a buyer who is best able to complete the transaction. Not all sellers want this strategy and it is never my decision. Pricing higher and working to find the best buyer is just as valid as a strategy!
Won’t the homeowner sell for less money in the end?
No. This is the quickest way for the market to speak about what it is willing to pay. As long as the property is fully exposed to the market, the property will attract the best offer. If the seller disagrees with that value they will have to make a decision!
Is this strategy fair to the buyers?
You might boo and hiss at me, but I think this strategy holds fabulous opportunity for all buyers. In a down market buyers are scared to death to commit to a home purchase- but many should buy for a multitude of reasons. Seeing a lot of people also willing to make an offer encourages a buyer to overcome the fear and make an offer. Other home sellers see that homes are selling and they are encouraged to put their home for sale- making more opportunities for the buyers.