Wondering about going higher or lower when discussing price with your expired listing clients? Whether it’s Manhattan or Brooklyn, it can be tough to determine the best price to list at. Do you want to go high to see if you can get more? Or do you stay a bit lower in the hopes of sparking a bidding war? It’s still a seller’s market so you do have a little more wiggle room.
Here are some pros and cons of some of your options
1. List at market value
Check with an appraiser or compare your home to similar ones around you and what they’re selling for right now. Cultivate a price with this information that you think is fair and reasonable and then stand by this price when you work with the expired listing to agree on the price. One positive about listing at market value is that it’s more of a sure way to sell at asking price and relatively quickly. So if your expired listing seller is in a rush, this may be the best bet you and them.
2. List high
To go high, that typically means 5% to 10% more. This one is great if you really think you can get that higher price for the home, especially if it’s in a desired neighborhood. However, there are a couple downsides to watch out for. The property could sit longer as some potential buyers keep looking for something lower. Or there could be problems when it comes time to sell if the appraisal of the property is lower that the number you’ve listed at.
3. List low
This last tactic of listing lower than market value (again think 5% to 10% lower) has pros and cons as well. This can attract more buyers, create buzz and excitement and potentially spark a bidding war. This is great because you and the seller will have more options in a short time to choose from. The downside is that having a lot of options means a tricky decision of which one is the best for the seller. The other downside is there’s the possibility of only receiving one offer at or below asking price and then you didn’t really get the higher bids you were looking for.
Take these different approaches into consideration as you work with expired listings in Manhattan and Brooklyn to determine the best price for each property.
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