BuyerWillEPB that is a great response. You got a laugh out of me…
So here is what I would term a tolerable reason for a price range.
When a person lists their home with a realtor, on the listing agreement there is a section where you list how much you will pay the cooperating broker. Now SOME brokers will work out deals with sellers that state if they end up representing both sides, the commission on the coop side will be reduced.
Lets be theoretical –
So lets say you have Remax list your home. You will pay them say 2.5% to represent you the seller, this is known as the listing side. Let’s say you will also offer a cooperating broker commission of say 3% to the agent representing the buyer… (fyi in real estate this is also known as the selling agent believe it or not)…
Okay but then you work out a deal with the Remax agent and you say okay if you Mr Remax agent brings a buyer I will only pay you 2% as a cooperating broker commission.
So in that case it can be argued that it is justified that you list the home in a price range where the low price was 1% less then the high price. This indeed makes sense. Of course nobody prices in this manner AND you would need to get that agreement in place with your listing agent.
