You’re right, XBoxBoy, but I have thought about this alot and I think there is more to it.
You have covered the realtor psychological game with the BUYER.
But there is also a psychological game with the SELLER going on as well.
If the seller told the realtor they wanted $850K, the realtor typically comes back and says “OK, but we need to get a lot of ppl coming through…we’ll use a range $699K-$850K to get people to come by, fall in love with the place, and come up in price to $850K”. Just like you explained in your post.
But what this also does is to get the seller used to the idea of a smaller selling price for their home….they have now seen $699K in big bold letters as an acceptable price for their house on the MLS. When the buyer comes back with $800K, suddenly it doesn’t seem so bad.
