What if you underprice your home to get multiple offers and offers you receive are too low?
What if a Buyer offers your FULL asking price?
What if they offer you MORE than asking price?
Are you legally REQUIRED to accept an offer you receive it’s equal or more than your asking price?
When I meet with clients to list their home and we talk about pricing strategies some occasionally get scared. They’re afraid of “giving away their home” for LESS than FMV.
Specifically, the temptation for Sellers is to ask as much as possible (and then a little more).
Whether the strategy is to underprice the home to get multiple offers, or to price the home at fair-market-value as it should be priced, many clients fear if they only get one offer and it’s too low, or if a Buyer actually offers them the full asking price, then they fear they are legally obligated to accept such an offer.
What if they don’t want to accept an offer that’s too low?
What if someone offers full asking price and they change their mind and want more, or change their mind about moving?
The answer is nobody can force you to accept an offer or sell your home.
Many years ago I remember my father had a business partner who overpriced his home.
He wasn’t motivated to sell and he was content to let it sit on the market for an extended period of time just to see what happens.
He actually stopped watching it every single day because moving wasn’t a priority for him so he just waited patiently to see if an offer ever came in.
Well over that summer the market heated up. Demand increased.
And although there weren’t bidding wars, someone offered the seller full asking price.
Problem was when the offer came in the seller asked his client what’s going on with the market.
He hadn’t checked in months. Well now the house was worth MORE than the offer.
BUT the offer was Full Asking Price so the seller had to take it. He sold his house for a discount.
But many years ago the law required that if someone offered you full asking price you HAD to take it.
But that law was abolished many years ago.
So the bottom line is even if you underprice your home, if someone offers you less than fair-market-value then you don’t have to accept it.
IF someone offers you FULL asking price but you underpriced it, then you don’t have to accept it.
Even if a buyer offers you MORE THAN your asking price you DON’T have to accepted it.
If you want to know more about pricing strategies, or the process of buying or selling a home I’m always happy to chat.