What Causes Multiple Offers When Selling a Home
So, what separates the best from the rest? Well, there are obvious factors, such as the home's condition and aesthetics, using the correct pricing strategy, and having the home as "show ready" as possible. Then there are agents who under-price their listings with the intended purpose of eliciting multiple offers. This is a risky policy for a number of reasons, not the least of which is it can generate buyers who then feel they have over-paid for the property and cancel once they are in escrow. Two lesser-known factors are the micro-market conditions (what's active and pending in the neighborhood), and how well exposed the home is.
While a particular neighborhood might be experiencing a lot of activity, high number of sales, and multiple offers, past success doesn't always indicate future performance. We've seen such neighborhoods where the residents who want to take advantage suddenly list their home in the masses, thus instantly flooding the market and temporarily cooling it off. By contrast, we've seen moderately level neighborhoods that have gone weeks or months without an available home. This allows demand to build with no supply. The next home to list will likely experience a bidding war!
DISCLAIMER: Not all realtors' marketing plans are equal! Most agents do what I call the "3P's" of real estate...they put a sign in the ground, they place the home on MLS, then they pray it sells. While yard signs and the MLS are tools to get the job done, they are not the ONLY tools. Imagine if a surgeon went into an operation with only a scalpel... I certainly wouldn't want to be in that OR! To expose a home to EVERY buyer and EVERY agent possible, you really need to empty out the toolkit. This is what our aggressive, cutting-edge, and tech-savvy marketing approach designed for how homes are sold in 2018 is designed to do. This makes a world of difference when it comes to selling versus sitting on the market.