does not show after three months, you might decide to lower the price to CMA levels. What if there has been a decline in your area during those months? Even though you will have reduced the price, it is still above what the CMA levels are now. You may keep reducing the price, but never catch up with your competition. Price competitively from the first. Don't hesitate to reevaluate your local market. Work with your real estate agent to determine the fair market value of your home. Underpricing to Start Bidding Wars An agent worked with a would-be buyer who had been patiently waiting for a foreclosed property to come on the market. The agent thought the property was worth about $575,000, and the buyer was willing to pay that amount. When the property came on the market, the asking price was $485,000. When the interested buyer saw the low asking price, he decided to offer $515,000, despite the agent's warning that the low asking price would likely elicit many offers. The bidder believed his offer would be enough to win the house, and that he was excited about getting not only a fantastic house, but also an amazing deal. The winning offer was $525,000, and the would-be buyer lost by bidding too low. The house did sell but for $50,000 less than it should have. Underpricing may lead to many offers, but you may sacrifice some time or money if the bids are lower than a strategic price.
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