Sellers in some markets are offering “discounted” listing prices as a way to attract more attention from buyers. The thinking behind such a strategy goes something like this, “If I price my home below market value, surely I’ll ignite a bidding war among hungry buyers and get more than the listing price and, maybe, even more than market value.”
Are these bargain listings really bargains? Does this strategy of igniting bidding wars in hopes of “getting” higher sale prices still work in the world of disappearing bidding wars? Let’s take a look.
Metro % Bargains Discount % Over Asking Difference
San Jose 86.2% 9.5% 8.5%
San Francisco 83.2% 10.5% 11%
Camden 78.8% 21.1% -6.9%
Newark 77.7% 11.5% -4.1%
Pittsburgh 74% 11.2% -7.1%
Allentown 72% 14.1% -5%
Portland 71.8% 3.8% 1.6%
Lake County 71.1% 9.3% -6.1%
Seattle 70.1% 3.9% 2.1%
Dayton 69.5% 9% -4.8%
Let’s also take a look at listings actually advertised as bargains. Are they really listings priced lower than market value?
Metro # Advertised as Bargains % Priced Under Value
Camden 7.1% 78.8%
Bridgeport 6.7% 56.6%
Lake County 6.1% 71.1%
Cape Coral 5.8% 36.5%
Tucson 5.5% 64.6%
North Pt – Sarasota 5% 42.2%
Hartford 4.8% 42.4%
Philadelphia 4.7% 58.2%
Newark 4.6% 77.7%
Phoenix 4.5% 53.1%
ˆSource: NerdWallet
