Does it Make Sense to List Property Price at a range

This topic has 9 replies, 9 voices, and was last updated 18 years, 3 months ago by (former)FormerSanDiegan.

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August 29, 2007 at 11:01 AM #10095

buyorhold
Participant

Why do people list their home selling price at a range? Does it still make sense to do so in today’s market???

August 29, 2007 at 11:21 AM #82405

PadreBrian
Participant

No, but it makes the seller feel better. It’s one way the realtor can ease the pain to the seller that their dream price is just that.

With that said, I do hate when realtors put “will entertain between…” roflcopper

August 29, 2007 at 11:23 AM #82406

an
Participant

I really despise the phrase “will entertain offers between…” too. I don’t even look at the high end anymore. The low end is what I consider the list price to be.

August 29, 2007 at 11:25 AM #82407

Alex_angel
Participant

The range is to ensure that they get on more hit lists.

You will see homes where the seller wants $800k but lists a range from $695. This is to ensure that when you search MLS listings for homes under $700 that theirs also pops up. It is a sleezy tactic

August 29, 2007 at 11:52 AM #82415

buyorhold
Participant

I agree.. it’s really lame… but our agent is strongly advising us to do so… I do not like our agent…

August 29, 2007 at 12:04 PM #82420

Sandi Egan
Participant

I do not like our agent…
Why don’t you fire your agent then?
Engage the valuable services of our esteemed fellow piggingtonians sdrealtor or SD Realtor?

August 29, 2007 at 12:21 PM #82427

bsrsharma
Participant

Having sold our house at the beginning of this downturn, my suggestion (learnt hard way) would be – Be more aggressive in pricing down the house. If you are not in the bottom 20% of comparables, both $ and $/sqft wise, nothing will happen and you will chase down the market. Many agents take comfort in placing it near middle. This market is absolute catastrophe and many RE folks are in denial (except all those who lost jobs).

August 29, 2007 at 12:31 PM #82430

gn
Participant

I would even go further. You need to price it in the bottom 10% to have a decent chance of selling in this market.

August 29, 2007 at 12:37 PM #82431

stockstradr
Participant

Having sold our house at the beginning of this downturn, my suggestion (learnt hard way) would be – Be more aggressive in pricing down the house. If you are not in the bottom 20% of comparables, both $ and $/sqft wise, nothing will happen and you will chase down the market. Many agents take comfort in placing it near middle. This market is absolute catastrophe and many RE folks are in denial (except all those who lost jobs).

Great advice!

August 29, 2007 at 7:30 PM #82498

(former)FormerSanDiegan
Participant

In a rapidly changing market it might actually help to do range pricing. For example, when prices were skyrocketing with little inventory it was difficult to accurately determine within less than 10% what your house would sell for.

We sold ours using a pricing range in 2005. It was on the market for about 3 weeks with about 3 dozen showings and sold at about 60% above the min 40% below the max range.
AT the time there were virtually no houses on the market within +/- 100K in the neighborhood.

Similarly in the current market, with credit drying up and price declines beginning to accelerate, it is difficult to establish what a house might sell for. There is now way to predict the actual sale price of a house to within 5% anyway. To me it is simply admitting that there is variability and uncertainty in the market.
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