Buyers Tips
- roseabbey5
- May 6, 2024
- 2 min read
Updated: Sep 25, 2024
This week I will be covering properties that are listed under market value.
If you are on the prowl for a property and find an "amazing deal" there is usually a reasonable explanation.
The strategy of the seller of the significantly underlisted home is to attract as many buyers as possible to generate a bidding war.
What's a bidding war you ask?
The absolute end goal of the seller and the real estate agent is to generate as much interest as possible in a property, by listing well under the value of what that property should sell for.
The players on the board are pitted against each other and let the best offer win!
For example, I have a listing in downtown Niagara falls.
Comparable homes in Niagara falls have sold for $540,000.
Instead of listing the property at that price, I list the property at $425,000
I will also be holding offers until a certain date.
This means I will not show any offers presented to the seller until the sellers agreed upon time and date.
Which translates into multiple interested parties chomping at the bit to see and place an offer on the property.
One misconception is that the seller has to accept one of the offers that comes in.
Let's say only one offer is submitted at the price of $425,000.
The seller can reject it, or sign back for more money.
The seller does not have to accept an offer if they are not pleased with the amount.
So when you are a buyer looking for property and you see a property that's price is too good to be true, generally it is and the property will certainly exceed the asking price of the home.
This is a helpful tip when factoring in the final property sale price of a home that's been priced below market value.
Relying on your real estate agent to present you with similar comparable properties so you don't over pay for your home is essential!
I hope these tips have been helpful.
Happy house hunting.
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