OVER PRICED MaRkEt PRICED aCtION PRICED

no traffic : no offers reD: if a property is overpriced, the buyer pool and agents will notice the property when it hits the market, but there will not be a perception of value. there will be little or no buyer traffic for the property and probably no offers.

some traffic : possible offers

yelloW: if the property is priced close to the market’s perception of current value, there may be some traffic, and perhaps an offer below the asking price. Without competition and the sense of urgency, there is no need for a single buyer to offer the asking price and a low offer is usually the result.

heavy traffic : multiple offers

Green: if the property is priced at or a little below buyers’ perception of value, it becomes a hot property. buyers now perceive high value. the property receives significant traffic and possibly multiple offers that could start a bidding war for the property. by setting the price at or a little below the buyers’ perceived value, the seller has stimulated the conditions necessary to sell the property quicker and possibly for more than asking price.