Could a Lower Asking Price Actually Create a Higher Sale Price?

Pricing slightly below market value may sound like the last thing a seller should do.

But there is a strategy behind it.

The idea is to create a lot of interest very quickly.

If buyers see a property that appears attractively priced, more of them may arrange viewings. If several people become interested at the same time, competition begins to build.

An open house can amplify that effect because buyers physically see other people viewing the property.

That creates urgency.

If several offers are received, your agent can then ask the interested buyers for their best and final bids.

The book gives an example of a property marketed at £500,000, around £20,000 below what I believed was its market value.

During the first week there were twelve viewings and four offers.

The successful buyer eventually offered £40,000 above the asking price and around £20,000 above what I believed to be the property's market value.

Of course, pricing below market value does not mean you are obliged to accept a low offer.

If the offers are not good enough, you do not have to sell.

The point is to use attractive pricing to create attention and competition rather than simply hoping one buyer will pay an inflated asking price, and this can resuolt in achieving a higher sale price.