makakilo house wai kaloiWould you like 50 people through your first open house?  

Would you like multiple offers over asking price in the first week of your listing?

Would you like to get the market price of your home now, or wait 90 days to get a low ball offer? 

This week I listed this beautiful 2 year old house for $639k, while the comparable sales said we could probably list it $20k-$40k higher.  Had we done that, we would have probably taken 3-6 months to sell, and would have ended up at around a $650k sale price.

As a result of our 'too low' listing, we had over 60 people through the open house, and are now working with buyers on offers that are over asking price. We will certainly get this home in escrow by this weekend.  

The banks have known for a long time that listing a house 'too low' just results in people bidding up to about the market price.  That's why they always list their foreclosures way below the market price of a regular "fixer."

The problem is that sellers are fearful of under selling their home.  But in this market, buyers want to a deal, a good price, a fair price.  They would rather pick up a quick deal than low ball an old listing. The result is that you end up around the same price, but it sells faster.  

But here is the part sellers forget - if your house sits on the market 6 months, you've just made 6 more payments that you might have avoided if you had sold it quickly.  In the end, any difference in price (if there is one) is offset by the time you save and the payments you don't make.  

Bottom line - you almost CAN'T price a house too low.  The lower it is, the faster it sells, the more offers you get, the higher it gets bid up.  

This house will be open again Sunday, 2-5pm.  By then, we will probably be in escrow well over asking price.  It's been on the market for 3 days.