How To Generate Multiple Offers On Your Listing: The Ebay Mentality

homevalueleads | March 15, 2014 | Marketing

Ebay Mentality- Generate Multiple Offers On Your ListingHave you ever shopped on Ebay before (or any other auction site)? Perhaps you have watched some of the reality shows on TV today like Storage Wars? I was watching Storage Wars last night and it never failed that someone would say “If this one goes for $500, I’ll go on it.” 45 seconds later, they making their bid for $750 because they want the locker worse than the other guy. Same thing happens on Ebay. You start bidding on that iPad because it’s only $50. Next thing you know, you are at $300 but don’t want to let it go. Why? Because you want to WIN. Competition has long been a major motivator of people and causing them to push the limits in order to WIN. Today, we are going to talk about how to generate multiple offers on your listing. I like to call it the Ebay Mentality.

How often do you hear of an auction where they say “Can I get a bid for $500? No? Ok, how about $400? How about $250? $100?” Not very often. And when you do, the bid will get picked up at $100 and then run all the way back close to or over that $500 mark. No one wanted it at $500 or even $400, but once it became a competition, people didn’t want to lose. But what happens if someone made the bid at $250 and no one else bid after that? It would have sold for $250 and the person selling the item would have lost out on the difference. Does this sound like good practice? THEN WHY DO WE DO THAT WHEN WE SELL OUR LISTINGS?

Every time I go to someone’s home to list their property, I provide them with a market analysis of their neighborhood. I tell them with your property, in this neighborhood, and in this condition, you can reasonable expect to sell your home between $X and $Y. Nearly 100% of the time, they will ask “What do you think about pricing it at $Z that way we have some room to negotiate?”

Let me tell you that there is no better negotiation than saying “Sorry, someone else has expressed interest in our home and have put in an offer as well.”

Does Ebay run auctions by starting high and coming down until one person will buy it? Do you see people on Storage Wars starting high and coming down until one person buys it? They start low to generate interest and then turn it into a bidding war.

In real estate, this happens every day. They are called foreclosures. Banks know that in order to get the most money they can for a home in the condition that it is in, they start low and get multiple people interested. If you attend any court house auction it is done the exact same way. They know they want to sell fast and for the most possible money, so they get as many people as possible interested and fighting against each other which then runs the price up.

Depending on your area, multiple offer situations are happening EVERY SINGLE DAY. In Dallas right now, if a home has sat on the market over 30 days then there is something drastically wrong with it either in condition or in price. We have homes that are under contract the SAME DAY they are listed with multiple offers and they are getting over asking price for these properties. Why? Because they are priced smart for their condition.

In a hot real estate market, pricing your listing appropriately can certainly give you an advantage. Don’t start high and come down until you find the one buyer. Start low and get lots of buyers for your property, and then go up until you find the one. THAT is how you generate multiple offers on your listing using the Ebay Mentality.

I encourage you to check out Home Value Leads and give our free 14 day trial a shot if you are looking for great online lead generation for real estate agents.

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