If you’ve ever been in the market for a house, or maybe just found yourself browsing around online, you may have come across a home that is range priced. This where the listing indicates the seller is looking for offers between a certain price range. Range pricing is a strategy agents use to capture more potential buyers and create competition. This isn’t the traditional way to list homes, but here are some of the pro’s and con’s of it.
Range pricing your home is a way to hit more potential buyers. For example, lets say you want $625,000 for your house but would consider lower offers. You may consider range pricing your home between $599,000-$625,000 to reach buyers who would pay up to $600,000. Additionally, when you’re essentially advertising your “bottom line” this can weed out the “low-ballers” from the mix of offers you’ll receive. Another advantage to range pricing is you’re sure to receive multiple offers. This allows you to use strategy and achieve your goal price.
It’s no secret that EVERY ONE wants a deal. So naturally, what number do you think buyer’s are going to gravitate towards? The lower number. By range pricing, you’re starting off by showing all your cards. This doesn’t leave a ton of room for negotiation. As long as you understand that, you won’t be disappointed in the results of range pricing. If you’re not truly okay with an offer at the bottom of your range, this may not be the route for you!
Range pricing isn’t my preferred strategy, although I can understand why some agents do it. In my opinion, my knowledge of value and pricing eliminate the need for range pricing. This strategy is used when either an agent isn’t confident in their ability to price, or does not know how to explain to their client how values are determined. Rather than range price your home between $599,000-$625,000… why not just price your home at $599,000? It will essentially create the same demand (if not more) and take away the uncertainty of what to offer for the potential buyers! The goal is to get multiple offers and the price driven up to the highest value, isn’t it? I was once taught to only negotiate with the truth, and that is the way I will proceed to do business.
Thinking about making a move? Let’s see where your home value lies⤵️