When a house is in foreclosure and if it shows poorly - perhaps it is vacant and in need of repairs and maintenance, the best way to get it sold is the price. For example, I can have a house priced at $175K. This price is high but I want to show the bank what the house is NOT worth. I may get one or two showings a week, or I may get none. So, after about two weeks, I drop the price to $165K. Now, I get three or four showings a week and the feedback contains comments like – doesn’t show well, too much work to fix up, and the like. The next drop in price is to $155K. Now there is a lot more interest. Showings are up to one a day but still no offers. Price reduction to $149,900 – BINGO! Now everybody wants it! First one offer comes in, then another – both for full price. Before these two offers can be analyzed, a third comes in for $2,000 over the asking price. I go back to the other two and tell them there competing offers and ask them to come back with their highest and best price. One raises their offer to $154K and the other to $155K. I meet with the sellers and we put it under contract for $155K which is what the place is worth in this market. Price plays a big part in getting a house like this under contract.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment