How to Get Multiple Offers When Selling Your Home
The combination of a limited housing supply, historically low interest rates, and less restrictive lending criteria is what’s fueling the latest housing market boom. Record-breaking housing prices and sales are all part of the equation that enable some homeowners to sell within a week and at their full asking price. But on the opposite side of that equation are homes that take months to sell and only sell when they're deeply discounted. Why? A lack of serious offers.
Offers are the not-so-secret sauce to a lucrative, expedient sale. The more offers your home generates, the higher the likelihood of a successful sale. Given that sellers are inundated with information—some relevant, most irrelevant—detailing how to generate offers, the team at Amy Stockberger Real Estate has simplified the process into what we'll refer to from here on out as the 4 Ps.
What Are the 4 Ps and How Do They Help Generate Multiple Offers on a House?
The 4 Ps are not a new concept. Instead, they represent pain points that—if you focus your time and resources on following—can generate multiple offers on your home. It’s an easy-to-grasp sequence that divides a complex process into four manageable tasks: pricing, preparation, pre-listing, and promotion. Each "P" in the sequence brings you one step closer to achieving a fast, lucrative sale.
Pricing has always been an area of debate in real estate. The key to successful pricing isn't about pricing low to get more offers or pricing high to leave room for negotiations. The key to successful pricing is to determine the price that will solicit the most buyer interest.
The price you decide on should reflect your immediate area’s housing trends. This is just one instance where you should rely on your Sioux Falls Realtor’s knowledge and expertise, asking for an explanation on the final price instead of trying to control the pricing debate. Keep in mind, your Realtor or real estate agent has access to comps that give them a far-reaching view of how much homes like yours are selling for and how quickly. They then use this data (in addition to years of experience) to reverse engineer a price that will pique buyer interest and satisfy your objectives for the sale.
Preparing your home serves two purposes: it enhances the appeal of your property in pictures while also reducing the time you'll spend on negotiating with buyers. In this housing market, you can sell a home as-is, but it takes much longer because buyer interest is limited.
Buyers want a turnkey property that only needs minor renovations to reflect their personal style. Those who don't want turnkey properties and will accept the home in any condition are the ones who will also expect a bargain. Therefore, the initial investment in repairs and renovations pays off through a quicker sale at a price that pales in comparison to the upfront cost.
If you’re targeting the turnkey type of buyer who's ready to enter a bidding war after finding their ideal home, a pre-list inspection is mandatory. This inspection serves as a warranty for the condition of your home and guarantees that the investment you made in repairs and renovations has paid off.
You can present this inspection to any interested buyers to show them your home won't come with any unwanted surprises, which is enough to encourage most buyers to make an offer. If not for the guarantee of the property's condition, for the fact that it shows you are serious about selling.
The last “P” in this sequence is promotion. But promotion isn't limited to your listing agent's marketing efforts. Rather, in this final phase of the equation, you can take action that will expedite the process by setting a deadline for offers that coincide with your Realtor's marketing.
Creating this urgency allows you to focus on serious buyers, eliminating others who are still in the gathering phase of the homebuying process and haven't graduated to the offer phase yet. If you execute this strategy perfectly you can also create a bidding war among interested buyers.
An additional benefit to following the 4 Ps system is that you have a roadmap detailing every step in the process, which allows you to capitalize on this boom and list your home sooner than you would without this strategy. Furthermore, if you rely on professionals like Amy Stockberger Real Estate to lead you through the homebuying process, you’ll likely become one of the success stories who can say they had a faster, more profitable sale.
- Michelle Nett