Unlike the weather, the real estate market hasn't been as hot as usual this June, with the typical home selling for 0.3% below its asking price, according to new data from Redfin. While it's a welcome shift for homebuyers, those getting ready to put their home on the market now face a harder sell.
At the same time, you may have heard about homes in your area that sold for over the asking price, following a bidding war involving multiple parties, and wondered what they're doing right. As it turns out, there are several tactics sellers can use to improve their chances of having similar results. Here are a few realtor-approved methods for sparking a bidding war.
In theory, all you need for a bidding war is at least two people who fall in love with a home and have the money to offer more than the asking price. You could hope that you get lucky and it happens organically, but according to Dana Hall-Bradley, a realtor with Better Homes and Gardens Real Estate Fine Living in Celebration, Fla. and Joe Muck, a realtor at J Muck Realty, there are several ways you can make your home more appealing to buyers and increase your chances of getting multiple offers.
First, there are the tried-and-true methods: Pricing your home lower than the comps, hiring a successful realtor, making it available for private showings, hiring a professional photographer to take the listing photos, making cosmetic repairs to the interior, improving curb appeal, and making sure your home smells good during a showing or open house.
If you've done all of that and your freshly painted colonial still isn't bringing all the buyers to the yard, here are a few other tactics to try:
Instead of putting your home on the market and waiting for offers to roll in, this will help create a sense of urgency. "Offer deadlines are a good idea as long as you already have an offer your client/s like," Much says. "This can push those sitting on the fence to submit an offer and perhaps even include an escalation clause, which can move the current offer to do the same."
Once you receive more than two offers, have your realtor message the potential buyers saying something like: “We are in receipt of multiple offers. The seller has requested all buyers submit their highest and best offers no later than Tuesday at 7 p.m.” At that point, you can also add a line to the listing to that effect.
So, someone submitted a lowball offer for your home. Instead of getting annoyed and ignoring the message, use it as an opportunity to talk up your property and the interest it's generating. When you (politely) respond thanking them for their offer, you can also mention that you've received multiple higher offers. That way if they really are interested in your home and have the money to buy it, they'll know they have to step it up.
Muck recommends this strategy for two reasons. First, there are fewer homes on the market at that time of year, so there won't be as much competition. Also, "you can display how your home 'feels' at a time of the year when that is top of mind for many buyers," he says.
If you're having trouble getting people in the door for public and private showings, you may want to consider holding an open house that feels more like An Event.
"I would highly recommend an 'over-the-top' and themed open house or broker’s open house to spark interest to buyers," Hall-Bradley says. "[It] make[s] it a more fun and inviting space for local realtors/brokers to preview," and, in turn, make them excited to promote your home to potential buyers.
But you're going to have to get creative: Baking a few dozen cookies and putting some balloons on the mailbox isn't going to cut it. Here's what Hall-Bradley suggests:
Hold the event immediately after listing the property.
Create personalized invitations geared toward the theme.
Advertise a give-away of some sort. "In the past, I have had the local spa in our town donate spa gift certificates," she says. "The guest would leave their name or business cards, and we would have a drawing after the event."
Have a goodie bag for each guest—perhaps containing something local to your neighborhood.
Roll out a (literal) a red carpet for guests, specifically if it’s a higher-end home.
Have an open bar with themed cocktails.
Order snacks from a local chef.
Offer a photo booth where the potential buyer would need to put their phone number or email in order to get their photo sent to them.
For example, Muck once hosted an ice cream social open house during the summer—complete with an ice cream truck—that resulted in a bidding war. "[It] encouraged families to come to the open house and view the home, but also gave them a sense of what living in the house would be like for their family," he says. Muck has also threw a lakefront BBQ as an open house for a lakefront property, which also helped generate multiple offers and resulted in selling the home for more than the asking price.
"By transforming your open house into an unforgettable event, you create a buzz that attracts serious buyers and highlights the uniqueness of your property," Hall-Bradley says. "This approach can make potential buyers feel special and excited about their prospective new home."
