uyers tend to view undervalued homes as false advertising rather than hitting the jackpot. The Real Estate authorities in the lower mainland have strict rules in place to prevent price-fixing and anti-competition regulations in the real estate market. In a nutshell, any seller may ask any feasible price for their home, aside from inviting an open auction without a reserve bid.
Underpricing rules were originally put in place to guard home sellers against dishonest agents swindling them by undervaluing their property. In today’s real estate market, the underpricing jig is up due to the open availability of information on the internet. Many home buyers feel an undervalued home is nothing more than a marketing tactic and it can really rub them the wrong way. At first glance, severely underpricing a home might seem like a strategy to attract more attention, there have even been cases in the news of actors being hired for new development grand openings to pose as buyers.
Underpricing might scare off buyers
The real problem with undervalued homes is after the superheated real estate buyers are sick of it. In today’s market, an underpriced home seller could scare off the very buyers they are trying to attract. Homebuyers have many more choices in today's market and could choose to look elsewhere.
Buyer who search with a minimum value
A new trend in searching for homes is emerging. Buyers who assign a maximum and minimum to their search, in an attempt to weed out intentionally underpriced listings or homes they know will not meet their needs. Today’s real estate market presents buyers with so many choices, they have to draw the line somewhere. If you have intentionally undervalued your home with the intention of upping your price once you get an offer, some buyers may be missing your posting altogether, thereby narrowing your marketing.
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