Monday, February 2, 2015

How to Use the Auction Effect to Sell Your House Faster

This approach has also been called 

How to Sell Your House in 24 Hours…but you can take a whole weekend! 



Have you ever noticed that some houses seem to sell as soon as they go on the market, and others just sit there for weeks or months? What's the difference?

There is a principle in psychology called scarcity – it's the desire that's in all of us to want something that we can't have. 

There are some strategic ways the illusion of scarcity can be orchestrated and it often appears in real estate situations without people even knowing that it's there. For instance, have you ever heard of a situation where more than one person was interested in a house? In those situations, there was a bidding war, where several buyers competed for the same house. 

In most cases like this, the house will sell for more than the owners are even asking – and the buyers feel great about it because they won. Someone else wanted the house, but they got it. Situations like this are called the auction effect

Something you MUST KNOW about the auction effect is that it dies out. As a real estate agent, I see many homes that have sold quickly at a high price due to an auction effect. But then the buyer backs out or doesn’t get their loan, or something else. 

The result is that the house goes back on the market. Once back on the market, the auction effect is gone, and that house will often sit for weeks gathering dust. Eventually the home will sell, often with the sellers dropping their price a bit. 

However, as someone who has studied the Auction Effect, I know that it can be revived, even on a house that has languished unsold for weeks. The easiest way to do that is create two short listing periods. After the first expires, recreate the auction-effect with the new listing.

So how do we create the auction effect? Click here to download my whole report

So, when you’re considering listing your home, work with a savvy agent (like me) who knows these tricks and techniques that make all the difference in how fast your home sells and for how close to your asking price.

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