The real estate industry uses the value range pricing to determine the highs and lows for pricing a home getting ready to be listed for sale on the market. For example, the market value price may be $120,000, yet the value range pricing can be priced from $150,000 to $100,000 for similar homes in the same neighborhoods. The difference in pricing is usually a result of lot size, improvements or renovation of the home or simply supply and demand within the market and what the buyer is willing to pay.
For the seller value range pricing can be a good, especially as the market changes and listed prices fluctuate. You may have to adjust the listing price accordingly in either direction. In a seller’s market, the listing price could be higher, …show more content…
Theoretically, the approach was created to expand the market’s outreach using a wider range of listing prices to attract more potential buyers in the market. For instance, if 100 buyers in the $100,000 range showed interest along with another 100 from the $150,000 range, the seller would double the chances of selling the home quickly. The goal would be to negotiate a fair market purchase of $120,000 for the home.
Pros and Cons
As the seller, you have to decide is this approach works best for selling your home. One of the advantages of value range pricing is the wide spectrum of buyers it may attract to your view your home and make an offer. The con to this listing method, you may find yourself getting several lower offers for the home rather than getting the home’s fair market value. As the seller, you always have the option of countering the offer or declining it.
At the same time, if the home’s features justify a higher price and you’re in no hurry to sell the home, you can wait for a higher offer. This method of thought defeats the purpose of the using value range pricing from the start. What may happen as word travels quickly in the market and the neighborhood, your home could be sitting on the market longer than you expected, unless you are willing to accept a lower offer for your …show more content…
For some, it’s seen as a bait a switch tactic when an interested buyer makes an offer within the listing range price and the seller counters with a higher price still within the listing range price. It can be frustrating for the buyer and in most cases the buyer walks away from the deal.
If this method of marketing is now common to the area or neighborhood, most realtors will steer clear form it and advise their clients to do the same.
Beat Strategies
Price your home correctly using the value range pricing as tool to determine a fair market value and listing price within the range pricing. Take into consideration the surrounding homes selling and conditions compared to your home. If you have improvements to your home, add these values into the listing price and make it easier for the prospective buyer to know the selling price using a fixed listing price. By pricing your home to the current market value incorporating all of the upgrades you’ve added over the years, gets you the results you want – home sold for asking
For the seller value range pricing can be a good, especially as the market changes and listed prices fluctuate. You may have to adjust the listing price accordingly in either direction. In a seller’s market, the listing price could be higher, …show more content…
Theoretically, the approach was created to expand the market’s outreach using a wider range of listing prices to attract more potential buyers in the market. For instance, if 100 buyers in the $100,000 range showed interest along with another 100 from the $150,000 range, the seller would double the chances of selling the home quickly. The goal would be to negotiate a fair market purchase of $120,000 for the home.
Pros and Cons
As the seller, you have to decide is this approach works best for selling your home. One of the advantages of value range pricing is the wide spectrum of buyers it may attract to your view your home and make an offer. The con to this listing method, you may find yourself getting several lower offers for the home rather than getting the home’s fair market value. As the seller, you always have the option of countering the offer or declining it.
At the same time, if the home’s features justify a higher price and you’re in no hurry to sell the home, you can wait for a higher offer. This method of thought defeats the purpose of the using value range pricing from the start. What may happen as word travels quickly in the market and the neighborhood, your home could be sitting on the market longer than you expected, unless you are willing to accept a lower offer for your …show more content…
For some, it’s seen as a bait a switch tactic when an interested buyer makes an offer within the listing range price and the seller counters with a higher price still within the listing range price. It can be frustrating for the buyer and in most cases the buyer walks away from the deal.
If this method of marketing is now common to the area or neighborhood, most realtors will steer clear form it and advise their clients to do the same.
Beat Strategies
Price your home correctly using the value range pricing as tool to determine a fair market value and listing price within the range pricing. Take into consideration the surrounding homes selling and conditions compared to your home. If you have improvements to your home, add these values into the listing price and make it easier for the prospective buyer to know the selling price using a fixed listing price. By pricing your home to the current market value incorporating all of the upgrades you’ve added over the years, gets you the results you want – home sold for asking