Price Range Selling
Price range selling is where your home is not offered at a set price but rather in a price range. For example, if a home that has a market value of around $500,000 was for sale using the price range selling method, the agent would suggest that it be advertised for a price range of say $485,000 to $535,000.
The theory behind price range selling
The theory behind this method of marketing is that lots of buyers will be attracted by the lower price, and once they inspect the home and fall in love with the home, they will happily pay the higher price... REALLY? How smart is that!
Why do agents suggest this
One reason can be to create activity, which gives the appearance they are doing a great job. From this activity you will almost certainly get some offers, of course they will be low! But, after hearing these low offers for a while you start to believe that perhaps this is really what your home is worth.
The false perception
Now that you are thinking that your home may be worth less because that is what the 'market' is telling you, it is now easier for the agent to talk you down and get you to accept a lower offer.
The agents sales pitch
The Price Range Selling method may sound terrific from the agents sales pitch but from your perspective one of the main concerns is setting a correct price range that won't undersell your property.There's an old adage that when selling anything never ask for less than you would expect to achieve, so use caution with persuasive agents.
If you are currently selling, or about to sell, and would like someone independent sitting on your shoulder observing the goings on, without interfering in the process, drop us a line and see how we can assist. We understand that you might have only dealt with agents once or twice in your lifetime but we do it every day! Contact iREC and see how we can help.