The Real Estate Industry Uses The Value Range Pricing Essay

992 Words Feb 27th, 2016 4 Pages
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, and once the demand increases peaking buyers interest in your home a competition of higher price offers can happen.
The industry has a method for managing these changes and accommodating the seller by using value range pricing. Instead of listing the property at a fixed price, which is used the majority of the time and your realtor may recommend listing a pricing range for your home. Interested buyers will see the home’s price ranges posted from high to low. Value range pricing is also known as variable pricing, range pricing or value range marketing. It’s up to the seller to decide if this marketing approach works best for selling your home.
In some areas of California this method for selling homes works because it gives both sellers…

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