Every property seller has had a different experience when selling his/her property. While some get their home for sale listed and get multiple offers on a house within days, others stay on the market for months without attracting any purchase offers from property buyers. Contrary to popular belief, getting multiple offers when selling your house has nothing to do with luck. A seller that is attracting many offers on their property has done their research and taken the necessary steps to accomplish this. If you want to sell your house, here are some tips for generating a real estate bidding war:
Understand Your Real Estate Market
Before listing your property, you need to understand the present state of your local real estate market. A real estate market can either be a buyer’s market, seller’s market or a balanced market.
If the real estate market is a buyer’s market, there is a very low possibility that you will generate multiple offers. A buyer’s market happens when the number of homes available for sale is greater than the number of buyers in the marketplace.
On the other hand, a seller’s market happens when the supply of houses is limited and there is a surplus of willing, ready buyers in the marketplace. This means that there are higher chances of attracting multiple offers and making home sales. Therefore, the best time for generating multiple offers on a house is when the real estate market is either a balanced market or a seller’s market.
Houses that generate multiple offers are usually sold in an ‘auction-like’ environment. The starting price is usually much lower than the final sales price. The low starting price is what grabs the interest of potential buyers looking for a great real estate deal. Check the comparable sales data for the neighborhood (asking price and selling price), and then price your house at a slight discount. This will make your property stand out to buyers and generate multiple offers on a house.
Consider Carrying Out Small Improvements
One of the best ways to generate multiple offers on a for sale by owner (FSBO) property is by making low cost, basic improvements before listing. You only have one chance to make a great first impression on potential buyers. However, this does not mean that you have to perform a complete remodel on your bathrooms or kitchen. Simple home improvements can make a big difference in generating multiple offers on a house.
Here is how to get the most for your home when selling through small improvements:
- Apply a fresh coat of paint on the outside and inside
- Replace carpets and refinish floors
- Thoroughly clean every corner of the house including garages, basements, closets and crawl spaces
- Replace outdated light fixtures
- De-clutter the house
- Spruce up the yard and driveway to boost curb appeal
- Fix your doors, windows, faucets, heating, stoves, and air conditioning
If you have replaced any systems or appliances in the recent past, mention it in your property listing. This will show potential cash buyers that your house is in a move-in ready condition.
Have a Pre-Listing Inspection
Another great strategy for attracting multiple offers on a house is to have a home inspection prior to setting up your real estate listing. This will show you what needs to be repaired or renovated in the home. In addition, you can make the inspection report accessible to any potential buyer. The more honest and upfront you are with buyers, the higher your chances of attracting multiple offers. The inspection report will go a long way in winning the trust of prospective buyers.
Expose the Property to the Housing Market
To attract multiple offers on a house, make sure your property has sufficient exposure to the market. The first thing you need to do is get the property listed on the Multiple Listing Service (MLS), as well as on real estate listing sites such as Mashvisor. When listing your home for sale, be sure to have a great description of the property accompanied by professional photos of the home. The photos should highlight every room of the house and outside as well. Don’t forget to market your property on social media sites such as Facebook, Twitter, and Instagram. You could even go further and create a dedicated website for marketing your house if you are a real estate investor.
Open the Home to Brokers and Buyers
One of the best home selling tips is to open your house to buyers and brokers. The more agents who know your property is on sale, the more the chances of attracting multiple offers on a house. Quite often, brokers already have a buyer in mind when viewing your property. Hosting an open house can be delegated to your local real estate agent. The agent will figure out how to lure the local players to the showing.
However, if showing your home requires too much notice or too many calls for setting an appointment, you are likely to put off potential buyers. This significantly lowers your chances of generating multiple offers on a house. To increase the possibility of getting multiple offers, your house must be showable on demand. If potential buyers are required to make an appointment, the advance notice should be two hours or less. Better still, you can allow brokers to pop in at their leisure when they are in the area.
Showing your house on multiple days can be frustrating and inconvenient. For example, keeping the house clean at all times can be a great challenge. However, when you consider what is at stake, you will be ready to put up with the inconveniences that will help in getting multiple offers on a house.
If your house has been sitting on the market for a long time with very few offers coming, you might need to re-strategize. For instance, you might have to lower your price in order to generate multiple offers on a house. Talk to your agent about the best price-reduction strategy that would work for you. Most buyers want to see chunky reductions rather than small, incremental reductions. A good real estate agent will come in very handy for real estate negotiations to get the best offer.
List your property for sale in the Mashvisor Property Marketplace for FREE and watch the offers roll in! Your property can be viewed by thousands of investors, agents, and property managers.