When a homeowners places their house on the market, they always want to get he very best price. But getting the best price means finding the right buyer. Of course, the dream buyer isn’t always available when selling a house. On the other hand, sometimes a seller just needs to get the house sold even if the price isn’t perfect. You can often see these types of homes listed as priced to sell.
But what exactly does that mean?
The term “priced to sell” is a way for someone selling a house to communicate that the cost of the home is in line or under current market rate. In other words, it is their way of telling you that the home is a bargain price given comparable home sales. This is not a fool proof description of course, since some real estate agents like to use this term as bait.
When the cost to buy a house in a particular neighborhood or market is a great deal, then it can be considered priced to sell. While a true version of this is seldom seen, a skilled property appraiser can point out when a house is a steal of a deal.
Priced to Sell for Buyers
If you are in the market to buy a house, then finding one with a low price is a dream come true. But homeowners know well enough to get their homes appraised or to work with a real estate agent so the home isn’t underpriced.
So as a buyer, finding an underpriced home isn’t always easy to come by. That being said there is still plenty of opportunity to find a great deal when buying a house at market value. Doing so includes getting a great home inspection to uncover any possible downside of the house.
When making an offer, you can present any potential issues to the seller with the goal of getting a discount on price. Any amount taken off the price of a market-value home will help you find a great deal and start building equity sooner.
Priced to Sell for Sellers
As a seller, you will obviously want to get the most money for your house as possible. But unless you plan on updating every room and replacing the roof, you’d have to put a lot more of your own money into doing so.
Since most sellers do not want to do fixes themselves, selling their homes as-is is much easier. But buyers know what potential value looks like – doing the small fixes and updates that bring a house to the current standard.
If you are selling a home below market rate, you would be pricing it to sell. Buyers will know it is a good deal and rush to buy it from you.
While it may seem silly to sell for under market value, doing so can sometimes cause added interest in your property. If you get six offers for your home which was listed under market value, you could have a bidding war on your hands. If this happens, as a seller you may be able to get each buyer to raise their price to beat out the others.
So as a seller, your priced to sell house may actually drive enough interest to create excess demand. This extra demand in your house will drive up the offers and result in you getting paid more than you thought.
Of course bidding wars do not always work out this way. To avoid underselling your house, get an instant offer from us to buy your house. Our offers come from interested cash buyers who want nothing more than to buy your home.