of 0.05% to 0.07%, on average, in the final sale price (which translates to an extra $117 to $163 in the final sale price); • However, sellers who listed their homes 10% to 20% lower than other homes in the neighbourhood saw a slight decrease of 0.05% to 0.08% in the final sale price (which translates to a loss between $117 and $187 from the final sale price). (MoneySense.ca) There is a better way to bring on the bidding war. Allow me to explain.
NEGOTIATION TECHNI N TECHNIQUE #3: UE #3: BRING ON THE BIDDING WAR
A bidding war is usually a carefully crafted situation that can bring the bid on a home above the price the homeowners asked for in the first place. Many sellers mistakenly assume that to start a bidding war in order to get some competition, they need to price their home low in the beginning. But this “strategy” might end up costing you. For instance, MoneySense.ca reports a study published in the Journal of Economic Behavior & Organization, discussing overpricing and underpricing a home for sale having counterintuitive results.
According to researchers:
THE PROCESS
• The first thing you do is put your desirable home on the market. • Ideally, you also schedule an open house for just a few
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