Pricing Range

[uncomfortably numb]

I always thought the range was about being able to legally turn down reasonable offers in order to wait for folks stupid enough to pay more.

This is a great example which clearly demonstrates that nearly all law is about property, not people.

[uncomfortably numb]

I always thought the range was about being able to legally turn down reasonable offers in order to wait for folks stupid enough to pay more.

This is a great example which clearly demonstrates that nearly all law is about property, not people.

[murf2222]

Alright, longtime lurker here and this topic chaps my hyde enough that I must speak up!

If I’m not mistaken, the value-range scam was hatched when there were multiple offers (over asking price) coming in on properties. It was a greedy, opportunistic ploy to squeeze as much money out of the buyer pool as possible. The market cooled, but the value-range stayed. I have voiced my displeasure about it more than once and have been told by realtors that at this stage it simply serves to widen the potential audience by casting a larger net when buyers do price searches online. Fair enough, I can live with that.

I have been looking to buy here in SD for 3 years now and have watched the market go from a sellers one to clearly a buyers market. When I now walk into an open house that has been on the market for 3 months and am verbally quoted a “value range that the seller will ENTERTAIN” by the agent I take it as an insult to my intelligence! It has pissed me off enough on one occasion that I refused to even walk thru the open house……on another occasion I hung-up on a realtor when they quoted me the price-range crap on a 125 day old listing!

So now it appears that an equally sleazy reason for it’s use is to falsely advertise a price on a home in order to bump the buyer up to the REAL price after emotions get into the mix.

I for one will not partake in this used car-dealer crap any longer dammit!! Who’s with me?

[murf2222]

Alright, longtime lurker here and this topic chaps my hyde enough that I must speak up!

If I’m not mistaken, the value-range scam was hatched when there were multiple offers (over asking price) coming in on properties. It was a greedy, opportunistic ploy to squeeze as much money out of the buyer pool as possible. The market cooled, but the value-range stayed. I have voiced my displeasure about it more than once and have been told by realtors that at this stage it simply serves to widen the potential audience by casting a larger net when buyers do price searches online. Fair enough, I can live with that.

I have been looking to buy here in SD for 3 years now and have watched the market go from a sellers one to clearly a buyers market. When I now walk into an open house that has been on the market for 3 months and am verbally quoted a “value range that the seller will ENTERTAIN” by the agent I take it as an insult to my intelligence! It has pissed me off enough on one occasion that I refused to even walk thru the open house……on another occasion I hung-up on a realtor when they quoted me the price-range crap on a 125 day old listing!

So now it appears that an equally sleazy reason for it’s use is to falsely advertise a price on a home in order to bump the buyer up to the REAL price after emotions get into the mix.

I for one will not partake in this used car-dealer crap any longer dammit!! Who’s with me?

[housingfreefall]

LOL!!!
Value ranges were originally intended to avert low ball offers; it created boundaries ensuring the seller would get a price in or usually above their bottom line. The buyer would have a sense of the seller’s bottom and could more easily guess the price based between two numbers. (it is a modern version of cattle prodding)
This was hatched 2001-02 at the beginning of the boom and has had unquestioned success for the seller. Basically the mentality is I can control how we negotiate.
Negotiation has not died but it has for some time been buried alive the good news is it is making a come back.

Example:
Using 600-650 implies if you plan on bringing anything to the table it better be above 600 and pretty close to 650K.
Hence forth this is a typical deal on a value range property:
Buyer initial offer 610K seller counters 640K seller counters 615K seller counters final meets in the middle 627,500 who just got the deal?

How a house used to be priced was by using comps for the area (as in neighborhood no not Kensington for Normal Heights or Talmadge for College area or Carmel Valley for Mira Mesa) comps in your neighborhood based on sales in the last 30-60 and 90days. The comps give a base line and then the upgrades, yard size, pool, and views are factored in.
The best course of action when dealing with ranges is to get a list of closed deal in the time period indicated above and get in your car and drive. Take the sqft average $ and multiply it by the sqft of the property you are interested in that equals a fair market value.
Take that price and minus 10-15% to establish you initial offer.
Here are some of the things I have heard of late: that is not in range~
Response I am very interested in a counter and you are obligated to present every offer to your client if there is a no to be had let the client be the one to give it. If some one does not deal~it is because they are OVER PRICED

This statement is supported of course by your comps, knowing mathematically what the value of the property is.

ZB

[housingfreefall]

LOL!!!
Value ranges were originally intended to avert low ball offers; it created boundaries ensuring the seller would get a price in or usually above their bottom line. The buyer would have a sense of the seller’s bottom and could more easily guess the price based between two numbers. (it is a modern version of cattle prodding)
This was hatched 2001-02 at the beginning of the boom and has had unquestioned success for the seller. Basically the mentality is I can control how we negotiate.
Negotiation has not died but it has for some time been buried alive the good news is it is making a come back.

Example:
Using 600-650 implies if you plan on bringing anything to the table it better be above 600 and pretty close to 650K.
Hence forth this is a typical deal on a value range property:
Buyer initial offer 610K seller counters 640K seller counters 615K seller counters final meets in the middle 627,500 who just got the deal?

How a house used to be priced was by using comps for the area (as in neighborhood no not Kensington for Normal Heights or Talmadge for College area or Carmel Valley for Mira Mesa) comps in your neighborhood based on sales in the last 30-60 and 90days. The comps give a base line and then the upgrades, yard size, pool, and views are factored in.
The best course of action when dealing with ranges is to get a list of closed deal in the time period indicated above and get in your car and drive. Take the sqft average $ and multiply it by the sqft of the property you are interested in that equals a fair market value.
Take that price and minus 10-15% to establish you initial offer.
Here are some of the things I have heard of late: that is not in range~
Response I am very interested in a counter and you are obligated to present every offer to your client if there is a no to be had let the client be the one to give it. If some one does not deal~it is because they are OVER PRICED

This statement is supported of course by your comps, knowing mathematically what the value of the property is.

ZB

[(former)FormerSanDiegan]

I actually sold my house in 2005 using a price range. WIth Century 21, Not Prudential. Here is why we did it:

In spring of 2005 in my neighborhood there were so few homes on the market that there were large gaping holes in price ranges. In our case, there was maybe one house priced between 600K and 900K. We thought ours was worth 8xx K.
We priced it from the 770K to 850K (or something like that). It sold in the 820’s.
In our case, it was because we really did not know with more than 10% precision what it should sell for.

These days, in most areas, there is more than enough inventory to compare pricing relative to the competition. So it makes less sense than in the heady 2004-2005 days.

[(former)FormerSanDiegan]

I actually sold my house in 2005 using a price range. WIth Century 21, Not Prudential. Here is why we did it:

In spring of 2005 in my neighborhood there were so few homes on the market that there were large gaping holes in price ranges. In our case, there was maybe one house priced between 600K and 900K. We thought ours was worth 8xx K.
We priced it from the 770K to 850K (or something like that). It sold in the 820’s.
In our case, it was because we really did not know with more than 10% precision what it should sell for.

These days, in most areas, there is more than enough inventory to compare pricing relative to the competition. So it makes less sense than in the heady 2004-2005 days.

[sdrealtor]

It started in Austraila not the USA. It was commandeered by Prudential. The goal is to increase showing activity and interest in a home. There is nothing nefarious about it. Personally, I dont like it and question its effectiveness.

[sdrealtor]

It started in Austraila not the USA. It was commandeered by Prudential. The goal is to increase showing activity and interest in a home. There is nothing nefarious about it. Personally, I dont like it and question its effectiveness.

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