I saw an article in the NYT today on this subject, touting it as a clever, crafty way to move your over-priced, unwanted pile of timber. I wasn’t going to mention it because I remain unconvinced it works but my real estate pal John Schneider in Tucson wasn’t so lazy. Not only isn’t he impressed, he’s got the figures to show why. I think you can put this one on the shelf of bogus ideas right alongside “green certification” for Realtors.
(From Tucson Foothills)
Does range pricing work?
When you see “ Seller will accept or counter offers between $599,000 and $669,000 “ you’re looking at a home that is range priced.
It’s a strategy that some agents believe will bring in more offers and also limit the bottom price that is offered, so it’ll discourage
I don’t know, and I’ve never seen any evidence, that range pricing actually encourages more offers than does a straight-forward well priced home. But looking at range priced homes that have sold, it’s obvious that range pricing is not very effective at limiting offers to the bottom end of the range.
And it seems to me that if it works at all, range pricing works better in a hot market where homes are flying off the shelf. In that case I think it would encourage buyers to at least consider offering more than the bottom of the range and could lead to a higher sale price.
But in the market we’re in, nah. Here are the range priced homes that’ve sold since Jan 1.
-SELLER WILL ACCEPT OR COUNTER OFFERS BETWEEN $200,000 & $215,000. SOLD $191,000
-Range priced $219,000-$239,000. SOLD $219,000
-SELLER WILL ACCEPT OR COUNTER OFFERS FROM 259,900 TO 299,000. SOLD $255,000
-Seller will accept or counter offers between $325,000 & $349,000