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What do you think of Value Range Pricing in Real Estate?

By
Real Estate Broker/Owner with Godzyk Real Estate Services NH License 033394

Why would someone offer a home in MLS at a price they were not willing to accept? Recently a Buyer of mine made an offer on a home listed at $250,000 in MLS and in the comments it states it was listed as a "Value Range" Listing of $250,000 to $300,000. The buyer liked it and offered $250,000. The Seller rejected it later countering at $300,000. The result, was an angry buyer who did not under stand why they would list it at a price they would not accept. The seller could not answer why. The listing agent stated that is how they attract more buyers to their listing.

 

 The home has been on the market over 4 months where other listings seem to go under contract in less than 30 days. So tell me, does value pricing work to sell home faster? I think certainly not.

 

Attracting buyers that can not afford what you really want for the home is not a sound marketing practice but a waste of time and a way anger many buyers and their agents.

 

My thought is skip the tricks and shortcuts and list it at or just below what the home is worth in today's market. Target the actual buyers who will be willing and able to purchase the home. A GOOD Listing Agent's job is to work with their Buyer through each step of the buying process. It is not time for trial and error or short cuts.  LEARN THIS ONE FACT: One should know that All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest Agent or Company. It is important to Hire the BEST Agent. In NH that could be me.  

 

 

You can search for Manchester area Homes For Sale by clicking here. what is for sale by clicking here.  

  

  

I leave you with my infamous words of wisdom that Buyers and Sellers can learn that they do have a choice in Real Estate Agents. Choosing a "GOOD" one, sure can make a difference. I leave you with my simple recipe to make your Real Estate Dreams come true.

 

 

THE TOP TIPS TO FIND A "GREAT" REAL ESTATE AGENT

 


1. CHOOSE THE RIGHT AGENT: As a Buyer OR Seller in this market you need every advantage you can to get your home sold. It starts with choosing the right agent. a. Ask for a Full time agent whose sole job is to sell homes. b. Ask for a Full service agent who will guide you through each step of the selling process. Discount brokers often equal discount services. c. Ask for a Local agent who knows your neighborhood and is readily available when you need them is a must. Out of town agents can leave you high and dry in your time of need. d. Ask for a well experienced Listing Agent can give you the advantages you need when selling your home. Not all agents are created equal. Choose only the best.  

 2. HOME BUYERS SHOULD START BY:  Getting a FREE PRE-QUALIFICATION with a local and trusted lender. They will look at your credit and financial picture and let you know what type of mortgage you may qualify for and what your interest rate and monthly payment may be.   

3. HOME SELLERS SHOULD START BYGetting a FREE MARKET ANALYSIS. Learn what your property is worth in today's market along with how ling it may take to sell. If you are ready to sell now, learn what you should ask for it. How much offers may come in at and what the approximate selling price should be. NH Home owners should contact me now.   

 

 

IN CONCLUSION the key to having a successful purchase or sale can increase simply choosing a better agent. The secret is that All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest. I leave you with now infamous philosophy, which is simple, to provide more personal and professional service to guide my clients through each step of the buying or selling process.

 

 

It does not take magic to turn your "For Sale" sign into a "Sold" sign. it takes a full time Local Agent who specializes in Listing homes like yours.


If you are thinking of buying a Home please contact us. Get a free pre-qualification along with some of the BEST CUSTOMER SERVICE through each step of the Buying Prices.

 

 

WE STRIVE TO PROVIDE THE BEST POSSIBLE SERVICE THROUGHOUT EACH STEP OF THE LISTING AND SELLING PROCESS!!!

 

 

 

 

We are local agents with experience who GET RESULTS!!!

 

We stand by you through every step in selling your home.

 

Another reason that makes New Hampshire a great place to Live, Work and Play.

 

 

 

  • About the Author: Scott Godzyk is the Owner/Broker of the Godzyk Real Estate Services in Manchester NH. With 29 years of experience, Scott is a leading Agent for Listing and Selling Homes in this area. To CONTACT Scott Godzyk please call 603.661.2121 or EMAIL: Sctprop@aol.com . We are Full Time Agents ready to serve all of your Real Estate needs through each step of the buying and Selling process. We are proud to be locally owned and operated.

Comments (28)

Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Raymond E. Camp i do agree you may get more by pricing it right then limiting yourself. 

Apr 21, 2015 11:35 PM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Sally K. & David L. Hanson I dont see the point of it either, especially in this market. Have a good day

Apr 21, 2015 11:35 PM
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

I have not heard of this and as far as I know it is not an option in our MLS Scott.

Apr 21, 2015 11:57 PM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Noah Seidenberg then you are lucky. That is the key,m they list it in mls at the low price and put the Value orice in the comments sections. Doesnt seem right

Apr 21, 2015 11:59 PM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

I think it's ridiculous! We have a particular agency here that is known for this type of tactic. I wrote about this about a year ago and it was one of my most commented blogs... 

Apr 22, 2015 12:52 AM
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

I've heard of some agents advising their clients to purposely price a home slightly below market value to hopefully elicit a lot of attention and multiple offers thus driving the price up but I've never heard of someone value pricing a home. This is a new one for me. It seems dumb to be honest. 

Apr 22, 2015 01:21 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Scott- that doesn't make sense to me.  Were I the buyer and that happened, I would be livid. 

Apr 22, 2015 02:12 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Scott - value pricing -  has come to light every one in awhile in my years in the biz,  but it has never caught on that I know of in my area.  Most people react like your buyer did.  Not the best advice given to the seller - and on the market 4 months. - I could go on but why. Enough said.

Apr 22, 2015 03:16 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Lawrence "Larry" & Sheila Agranoff. Call 631-805-4400 (c) it upsets more people than attracts them, that is for sure. 

Apr 22, 2015 03:24 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Nicole Doty - Gilbert Real Estate Expert I am with you. Especially a $50,000 swing and the key point, a low amount that they wont even consider accepting. 

Apr 22, 2015 03:25 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Kathy Streib the buyer had steam coming out of their ears that that this happnedl They wont even look at another home priced this way they said. 

Apr 22, 2015 03:25 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Anna Banana Kruchten - Arizona's Top Banana of Real Estate! we typically have 1 franchise that uses it. No one else that i know of.  

Apr 22, 2015 03:26 AM
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Scott

Value range pricing confuses the buyers . . . . and if it confuses the buyer it has no benefit to a buyer or a seller.

Good luck and success.

Lou Ludwig

Apr 22, 2015 04:08 AM
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Scott - Value range pricing made a brief, and mostly unhappy, appearance in our market several years ago, and then slunk off into obscurity, where it belongs.

Apr 22, 2015 04:40 AM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I haven't seen this bad idea hit my market yet, and I hope I don't. It doesn't sound like it works in your market, either. Those sellers need to find a listing agent that will work to get their home sold. 

Apr 22, 2015 08:34 AM
Michael A. Caruso
Surterre Properties - Laguna Niguel, CA

I never liked it and confuses the buyer. There's still some agents that continue this ridiculous pricing.  It's pointless. 

Apr 22, 2015 08:36 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hi Scott -- as others have commented, value range pricing made an appearance in our market some years back --- confusing is an apt word to describe the public's reaction.  It's mostly out of the picture now.   Strange idea.   

Apr 22, 2015 09:08 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

You nailed it.  Skip the range idea as that is a way to backfire everything.  Be prepared, list it at the right price and avoid the ensuing headaches of price ranges!

Apr 22, 2015 10:48 AM
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Scott Godzyk - I just never understood what do you gain by using value-range pricing! I had about 20+ answers on my question the other day!

I wrote an offer at listing price - which was at the bottom of value-range price - and listing agent just informed me that they are not going to accept our offer, despite it is at asking price!

This is a simplest way to turn off buyers....

Apr 22, 2015 11:19 AM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Multiple offers on scarce waterfront property listings in Maine are the only higher than the listed price sales we see happening in the real estate dog and pony.

Apr 22, 2015 08:39 PM