Have a listing you can’t sell? Make that property “home home in the range”.
As a user of "Range Pricing" let me see if I can explain how it works and how it lowers my days on market and usually results in a higher selling price for my Sellers.
"Range Pricing" is a marketing technique used to generate more showings on a property. As you know if they don't see it they can't buy it. The goal is to get the property to show up on MLS searches more often. This way Realtors can see the photos and property details and make a decision on whether or not to add it to their showing lists. You do have to disclose in the first line of remarks that the property is Range Priced.
Example: Lets say that the true Market Value of a home is $257,000 to $259,000. Usually the listing Realtor will list this in the low 260's in order to negotiate a selling price in the high 250's. Now let's say a Buyer walks in to another Realtors office and is looking for a home with the same parameters as the one listed but tells the Realtor he does not want to pay more than mid 250's and lets say the Realtor searches for homes with maximum list price of $260,000. Your listing will not show up!!!!! In reality if the Buyer sets a goal of $255,000 and the Seller's target is $259,000 there is probably a deal in there somewhere. But because of the way it was priced the Buyer never had the opportunity to see this property!!
Now "Range Pricing" using the same example would work like this. If the Seller and I agree that $257,000 to $259,000 would be an acceptable offer for his property I would "Range Price" this property from $249,000 to $269,000 with $269,000 being a full price offer(remember this must be disclosed on the first line of the remarks section). Now I am able to enter this listing with a list price of $249,000. Assuming the property is priced at market value whenever a Realtor searches the MLS for similar properties my listing will be the first one on the list!! Talk about market positioning. This all boils down to more exposure, more showings, more offers and normally a selling price in the middle of the "Range" which would be $257,000 to $259,000.
I have sold hundreds of properties using this technique and rarely have a problem with Buyers not understanding it. You will get low ball offers but you are always going to get those no matter how you price the property. The bottom line is if the house is priced properly and the Buyer sees it and likes it he will pay the price.
Explaining "Range Pricing" to the Buyer is very simple. Show them the remarks: This property is "Range Priced". The Seller will consider offers between $249,000 and $269,000 with $269,000 being a full price offer. Very straight forward. If and when the Buyer looks at additional properties they will understand the market value and hopefully make an offer accordingly. The Buyers I have worked with appreciate it that the Seller is letting them know up front that they are willing to negotiate. Buyers love to negotiate!
So try it on that listing you haven't been able to sell. Get some Buyers through the door. Your Seller may be more receptive to trying "Range Pricing" instead of lowering their price. So place that hard to sell listing “home home in the range”.
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