LAtoOC said:
Can you explain range pricing to me? Whenever I see a home with a range I always say "Oh clearly I want to pay at the top of that range!" It just seems like a weird tactic.
I can't speak for all agents, but here are a few of the upsides IMHO:
1. Broader advertising - many/most buyers are looking online and one of the first parameters any of the search engines is "what price?" If the home was listed solely at $410K and a buyer was looking at $350-400K, the home wouldn't show up in their search. Likewise, if they were looking from $425-475K it wouldn't show up either. With range-pricing, both of those searches would be reached. My goal is max exposure and letting the buyers and sellers decide on their price.
2. Ultimately the buyer and seller determine the price - One sets the price that they're comfortable paying, and the other sets th price they'll settle for. Often times, the actual prices are different even than what the parties admit to their agent.
3. Increased information - if nobody has bid on the property at $400-425K after a few weeks, you'll know that the price was not low enough to entice an offer.
4. There is more than one buyer in the market - buyers will bid on what the property is worth to them. If there's only one bidder, that's important to know. If there are a range of offers, that's important to know too.
There are several other schools of thought, and different sellers have different ideas. Seller decides how they want to roll, since they own the property.
-IR2
