The housing market remains a roller coaster. Inventory is low, prices are high, and most homes are still flying off the proverbial shelves. But even in a fast-paced market like this, there are no guarantees for your particular home.
So how can a seller create the kind of bidding war that pushes a home’s price well over asking?
We talked to experienced real estate agents for advice on how to get buyers to turn up and bid in droves.
Price your home to move
A relatively simple bidding war tactic is to price your home low to sell it at a higher price.
“Pricing the property below its true value can be scary, but it will attract a lot of attention to the property and generate multiple showings in the first few days on the market,” says Morgan Franklin with United Real Estate Lexington in Kentucky. “Ideally, that will drive the multiple-offer scenario that will yield a price above listing.”
But how low should you go? Even just 5% below market value may tempt buyers with the prospect of a deal and cause a stampede to your front door. Of course, the success of this pricing strategy depends on your particular market, so talk to your agent and understand the circumstances before making a decision.
Set a deadline for offers
People don’t want to miss out, and setting a deadline can light a fire under procrastinators. But this strategy isn’t for everyone.
“You only want to do this when you know you are priced right, have a ton of showings lined up, and have heard from agents that offer will come in,” warns Liane Jamason, broker associate at Smith & Associates Real Estate, in Tampa Bay, FL.
She usually waits until she has at least two offers on the table and then adds a note in the MLS and alerts all parties she knows are showing the home. The verbiage she uses is something like, “We are in receipt of multiple offers. The seller has requested all buyers submit their highest and best offers by Friday at 5 p.m.” She says that a recent deadline received 12 offers, with the highest one at $16,000 over the asking price.
Focus on curb appeal
By creating a great first impression, you’ve put forth the idea that your home is extremely desirable. Of course, the rest of your home is important—as is the price—but a beautiful landscape when buyers pull up goes a long way.
There are plenty of ways to enhance your home’s exterior to create a real pop. Lovely landscaping, fresh paint, and a fine-looking front door go a long way toward creating the vibe buyers crave. As Tamara Moritz, a Realtor® at Coldwell Banker Realty in Austin, TX, put it: “Today’s buyers are driven by curb appeal.”
Take a different view of listing photos
A picture is worth a thousand words, but listings usually showcase them in the same boring way, says Whitney Nicely, principal broker with Whitney Buys Houses in Knoxville, TN.
“Most people feature a straight-on picture of the front of the house,” she explains. But other angles could be much more eye-catching. One option is a corner picture, which allows the potential buyer to easily see two sides of the house. Or, select a picture highlighting a special feature—such as your kitchen, to allow the potential buyer to imagine cooking for the family, or your glorious backyard, to highlight outdoor living opportunities.
“A potential buyer is not always going to scroll through 36 pictures, so like my mama always told me, if you’ve got it, you’d better flaunt it,” she says.
Fuel buyers’ interest ahead of time
Jamason is a believer in advanced marketing to spark interest in a property before it is listed. Make sure your agent takes full advantage of all social media channels to market your home. And follow up to make sure they distribute a mass email to contacts, potential buyers, and fellow agents alike to spread the word that your home is coming on the market soon.
Another strategy is for your agent to enter your home in the multiple listing service early in the week, but restrict any showings until the open house until the weekend arrives, suggests Realtor® Tracey Hampson of Century 21 Troop Real Estate in Santa Clarita, CA.
“It creates a little frenzy because everyone wants what they can’t have,” she says. “So if you show them this beautiful home and then say, ‘but you can’t see it until the open house,’ it drives people crazy and creates activity and buzz for a listing.”
Stage an over-the-top open house
To stoke a bidding war, don’t be shy about going big for the open house—which is second nature to David Parnes and James Harris of Bravo’s “Million Dollar Listing,” who recently threw a lavish open house for a Hollywood Hills home inspired by the Burning Man festival.
The extravagant party featured an open bar, caterers, dancers, DJs, costumes, tarot card readers, body and face painters, human lampshades, and confetti machines.
“The party was insane and ended up generating numerous bids that sold the house for over asking price,” Parnes said. “Building buzz around a property helps to generate offers.”
Of course, celeb glamour isn’t the only way to up your open house game. Jamason recommends a “mega open house,” with hundreds of signs around town, a band, an art showing or other unique features, and noteworthy food.
“Really go above and beyond to have the house filled with people,” she says. “The more people who see it, the more interest you will generate.”
