It was initiated by Prudential. Basically it is a tool to try to get people into your home who actually would not be able to afford the home but the thought is that you get them in, they fall in love with it, and then they stretch to buy it.
Quick story… There is a listing in RB right now in a price range. It is a 60k price range, on the low end it is mid/highish 600’s and the high end is close to mid 700’s. So my client who is a cash buyer came in with a lowball offer. They countered at the high end. My client REALLY wanted the home so he came back right in the middle of the price range. They countered 5k less then their high end. This only served to my client off and he walked. I had a long discussion with the agent, who yes is a Prudential agent. I asked her why they listed a price range is there was no intention to take it. Her answer was, well you know how it is, this is how Prudential prices homes. I informed her that I am currently in escrow with two other homes and Prudential is on the other end. In both those cases we were at or under the price range, so please don’t try to rationalize that sort of behavior. Furthermore this particular listing has been riding the market down for the past 2 years as it has been listed a few times.
The bottom line is that the seller is simply not that motivated. The seller does have alot of equity in the home and the sellers behavior is being backed reenforced by this agents poor behavior.
I am not endorsing or not endorsing value range pricing. My advice would be if you are a seller and are going to offer the range pricing, don’t act like a ***hole if you get a lowball offer or an offer at the low end of your range. I have another listing in Vista and the sellers initially had me price it at a certain range based ont he data I gave them. We got 2 immediate offers right at the low end and they couldn’t negotiate a deal. I asked them why they had me price it their if they were not willing to negotiate at that offer and they told me that they had a friend who told them to work in that manner. I told them to reprice to something that they would accept so that they would not everyone off and they did.
(Note, Rus and others, this post is not intended to be a manipulative or shill post…trying not to add slants, just posting the facts… if you guys want I will delete it.)
