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Under Pricing Your Home As A Marketing Strategy | Active Rain

Under Pricing Homes Is Not A New Strategy

Under pricing a home as a marketing strategy to elicit multiple offers has been around for almost two decades, even in a down market.

“multiple offers are still here, due in part to a practice that first surfaced in the late 1990s” from the article Sellers underprice, hoping to get way over price / Strategy pits bargain-hungry bidders against each other by Kelly Zito, Chronical Staff Writer July 14th 2002

Recently there has been an increase in the number of homes being sold for over the asking price both here in Uxbridge and across the Greater Toronto Area.

In our hot real estate market Realtors® pricing a home at or near recent comparable sales might appear to be using under pricing as a marketing strategy to help get the highest possible price in the shortest possible time with the least amount of inconvenience for the seller. In reality it is the demand that is causing buyers to pay more.

While this strategy can work it does not always work in all areas or all markets. Understand the risks involved if you are contemplating employing this as part of the marketing strategy for your home.

Despite this article’s claim that “there is no downside to under pricing your home” there is always the possibility that you will not get any offers over the asking price.

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Under Pricing Your Home As A Marketing Strategy.

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