Underpricing A Home: Too Risky?
One of the biggest challenges for real estate agents, especially in a down market, is getting home sellers to price their property to accurately reflect market value.
That’s why a recent article in the Hartford Courant about underpricing homes caught my attention. The article highlights a home seller and agent who priced a property slightly below market value to generate interest and spark a bidding war. The home ended up getting four offers in a little more than a week and ended up selling for more than the asking price.
It’s a risky strategy and most homeowners aren’t eager to follow such advice. But in a market where there is a lot of competition and homes are taking longer to sell, it may be a seller’s only hope – especially if he has to sell quickly.
In Connecticut, home sales picked up three out of the last four months, according to The Warren Group. But some fear that the sales gains could be temporary once the homebuyer tax credit disappears in the spring.
In the meantime, agents who are assisting home sellers who have to move may be more seriously considering tactics like underpricing. Is it worth risk?