SOLD LISTING, WITH MULTIPLE OFFERS OVER ASKING…
Q: Tell me again, why is that a good thing for the seller? Was the home price too low?
"I see this all the time... Agents are proud that they sold a home with multiple offers over asking."
When I went to college I learned a simple concept:
"The Law of Supply and Demand"
What is the 'Law Of Supply And Demand'
The law of supply and demand is the theory explaining the interaction between the supply of a resource and the demand for that resource. The law of supply and demand defines the effect the availability of a particular product and the desire (or demand) for that product has on price. Generally, a low supply and a high demand increases price, and in contrast, the greater the supply and the lower the demand, the lower the price tends to fall.
So a low price multiple offers… Right?
BREAKING DOWN 'Law Of Supply And Demand'
One of the most basic economic laws, the law of supply and demand ties into almost all economic principles in one way or another. In practice, supply and demand pull against each other until the market finds an equilibrium price. However, multiple factors affect both supply and demand, causing them to increase or decrease in various ways.
What Factors Affect Demand?
Demand is affected by the quality and cost of a product. The number of available Homes at a price, remember it only takes one person to buy the home, If the price of a home is too low you will get a lot of people putting offers in for that home. This also works in reverse if the home is priced too high it will get no offers… For example, Your agent sets the price for a listing too cheep, the demand for home increases as more people interest to buy the home. MULTIPLE OFFERS!! May not get the Best price!!