How To Get Multiple Offers On Your Condo For The Best Results
Every home seller dreams of receiving multiple offers above asking price with no contingencies when they put their property on the market. There are multiple offer situations in just about every market. Multiple offers will get buyers in a bidding war and bring the highest price, but sometimes price isn't the only objective. There are other terms that can be very important depending on the situation. These terms include home inspection contingency, appraisal contingency, settlement date, seller rent back, and seller finding a house of choice.
How do you get multiple offers when selling your condo? Fortunately, there are steps you can take to put yourself in position to receive multiple offers.
1. Determine Your Strategy
Is your condo in poor shape and needs lots of repairs or updates? Are you an absentee owner living out of the area and want the least hassle? Or are you handling an estate sale for a relative? If you answered yes to any of these questions, then your strategy will be heavily dependent on a discounted price. You plan to sell it 'as is' and not make any repairs or updates.
On the other hand, if your condo is in good shape and you are willing to make a few changes, then you want to make sure your condo is stands out above the competition and is move in ready.
2. Price
Setting the right price is rather obvious, but there is a difference between a steeply discounted price for an 'as is' sale and price just slightly below the market. That is why you need to first determine your strategy as mentioned above.
Everyone wants a good deal, that is why Black Friday is so successful and Happy Hour pricing draws a crowd. It is the same with real estate. The low-price excitement will cause more buyers to show up and view your condo than if it was priced higher. And more showings are a prerequisite to more offers.
Keep in mind, setting a low initial price doesn't mean you end up selling below market. Often, the price will be bid up above market value.
Contrast this approach to the failed approach too many sellers take - 'I want to start the price high and if it doesn't sell I can always come down'. That approach can backfire because the condo sits on the market and gets passed over even months later when they come down in price to a more reasonable level. The 'starting high' approach leads to a sale that is below market and is a much more frustrating process.
Setting the right price is also building dependent. Does your building have many units on the market and not moving quickly? If so, then you need to start lower than a building with low inventory.
3. Staging
Unless your condo needs a lot of work and you are selling 'as is', you need your condo to stand out from the crowd. Staging isn't just for vacant condos and it doesn't have to be expensive. I bring my stager out for a consultation on all my listings. Sometimes, it is as simple as rearranging some furniture for a better flow, adding a few accent pieces and some decluttering throughout.
4. Create demand with pre-listing marketing
I like to do a couple weeks of marketing before the listing goes 'active' in the MLS. This includes direct mail to the entire building and surrounding area, online campaigns, reaching out to key agents, and using the 'Coming Soon' status in the MLS. The purpose of doing this is to build demand so when it hits the market, there are many buyers viewing the property. Nothing beats having multiple buyers in the condo at the same time to raise their sense of urgency. People want what other people want. It gives them validation that the place is highly desirable.
5. Make it accessible and easy to show
Once you do go live with the listing, you want to make it easy for agents to show it to their clients. If you can be away for the first weekend, that would be ideal (or at least the majority of the day). If you have any pets, take them with you for the day. Don't make seeing the place restrictive and ask for '24 hour notice' or limit the showing hours.
6. Add an offer deadline and/or 'buy it now price'
To give the impression you are expecting multiple offers, put an offer deadline in the listing description, like 'offers reviewed Tuesday at 5:00pm'. On top of that, use the ebay tactic of setting a 'buy it now price'. This would be a price higher than you expect to get and would be very happy to receive. This also sends a subtle signal that you expect to get higher than your asking price.
7. Expose it to the market
To really drive demand, it takes more than just putting in the MLS and waiting for the offers to come flowing in. A comprehensive marketing plan, both online and off line is a must. One or more open houses the first weekend is also recommended.
There are exceptions to every rule, including those listed above, and there are no guarantees. However, to put yourself in the best position to receive multiple offers, these guidelines will go a long way to get you there.
For a free consultation on how best to position your condo for maximum results, call or text me at 703-980-3027 or email me at [email protected].
