SWEOB

[vagabondo]

What is the origin and point of the “range”? It seems to be a California thing.

[XBoxBoy]

The point is to get you interested in a house that is more than your desired purchase price. For instance, say you were looking for a house around 700k. Your realtor might take you to place with value ranges of 699,000 – 849,876. You walk in and love the place, and make and offer for 700k. But then you’re told, no, they seller really wants a better offer and has countered at 830k. You end up settling for 800k because you really love the place. (At least that’s the way the realtors hope it will work out.)

Bottom line here is it’s a technique (gimmick?) to get buyers to look at more expensive houses. All part of the MLS games that get played.

XBoxBoy

[svelte]

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.

It’s all mind games.

[Ex-SD]

It’s one of the most idiotic ploys that has ever been attempted by the real estate industry. Can you imagine going to a car lot where the cars where “range priced”? How many do you think they would sell? I saw a video somewhere on the web a couple of years ago where a R.E. sales trainer was explaining why R.E. brokers should use this tactic.
When we decided to sell our principal residence and our rental home in San Diego in 2005, we interviewed several agents and two of them really tried to push this cockamamey marketing idea. We didn’t / we sold both places, pronto / we would never use an idiotic tactic like this to sell a home. Pure foolishness.

[an]

Maybe it’s just me, but when I see a “value range”, I completely ignore the top range and use the lower $ as where the seller would consider. Personally, I think listing price is pretty much useless. If it’s too low, you’ll get bidding war and the final price is higher than listing price anyways. If the LP is too high, then it just sit w/out any offer. With all of this, seller can reject even the highest price above LP. Might as well just list when you really want to sell and let the market tell you what it’s worth and if you don’t like it, take it off the market.

[an]

Maybe it’s just me, but when I see a “value range”, I completely ignore the top range and use the lower $ as where the seller would consider. Personally, I think listing price is pretty much useless. If it’s too low, you’ll get bidding war and the final price is higher than listing price anyways. If the LP is too high, then it just sit w/out any offer. With all of this, seller can reject even the highest price above LP. Might as well just list when you really want to sell and let the market tell you what it’s worth and if you don’t like it, take it off the market.

[an]

Maybe it’s just me, but when I see a “value range”, I completely ignore the top range and use the lower $ as where the seller would consider. Personally, I think listing price is pretty much useless. If it’s too low, you’ll get bidding war and the final price is higher than listing price anyways. If the LP is too high, then it just sit w/out any offer. With all of this, seller can reject even the highest price above LP. Might as well just list when you really want to sell and let the market tell you what it’s worth and if you don’t like it, take it off the market.

[an]

Maybe it’s just me, but when I see a “value range”, I completely ignore the top range and use the lower $ as where the seller would consider. Personally, I think listing price is pretty much useless. If it’s too low, you’ll get bidding war and the final price is higher than listing price anyways. If the LP is too high, then it just sit w/out any offer. With all of this, seller can reject even the highest price above LP. Might as well just list when you really want to sell and let the market tell you what it’s worth and if you don’t like it, take it off the market.

[an]

Maybe it’s just me, but when I see a “value range”, I completely ignore the top range and use the lower $ as where the seller would consider. Personally, I think listing price is pretty much useless. If it’s too low, you’ll get bidding war and the final price is higher than listing price anyways. If the LP is too high, then it just sit w/out any offer. With all of this, seller can reject even the highest price above LP. Might as well just list when you really want to sell and let the market tell you what it’s worth and if you don’t like it, take it off the market.

[Ex-SD]

It’s one of the most idiotic ploys that has ever been attempted by the real estate industry. Can you imagine going to a car lot where the cars where “range priced”? How many do you think they would sell? I saw a video somewhere on the web a couple of years ago where a R.E. sales trainer was explaining why R.E. brokers should use this tactic.
When we decided to sell our principal residence and our rental home in San Diego in 2005, we interviewed several agents and two of them really tried to push this cockamamey marketing idea. We didn’t / we sold both places, pronto / we would never use an idiotic tactic like this to sell a home. Pure foolishness.

[Ex-SD]

It’s one of the most idiotic ploys that has ever been attempted by the real estate industry. Can you imagine going to a car lot where the cars where “range priced”? How many do you think they would sell? I saw a video somewhere on the web a couple of years ago where a R.E. sales trainer was explaining why R.E. brokers should use this tactic.
When we decided to sell our principal residence and our rental home in San Diego in 2005, we interviewed several agents and two of them really tried to push this cockamamey marketing idea. We didn’t / we sold both places, pronto / we would never use an idiotic tactic like this to sell a home. Pure foolishness.

[Ex-SD]

It’s one of the most idiotic ploys that has ever been attempted by the real estate industry. Can you imagine going to a car lot where the cars where “range priced”? How many do you think they would sell? I saw a video somewhere on the web a couple of years ago where a R.E. sales trainer was explaining why R.E. brokers should use this tactic.
When we decided to sell our principal residence and our rental home in San Diego in 2005, we interviewed several agents and two of them really tried to push this cockamamey marketing idea. We didn’t / we sold both places, pronto / we would never use an idiotic tactic like this to sell a home. Pure foolishness.

[Ex-SD]

It’s one of the most idiotic ploys that has ever been attempted by the real estate industry. Can you imagine going to a car lot where the cars where “range priced”? How many do you think they would sell? I saw a video somewhere on the web a couple of years ago where a R.E. sales trainer was explaining why R.E. brokers should use this tactic.
When we decided to sell our principal residence and our rental home in San Diego in 2005, we interviewed several agents and two of them really tried to push this cockamamey marketing idea. We didn’t / we sold both places, pronto / we would never use an idiotic tactic like this to sell a home. Pure foolishness.

[svelte]

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.

It’s all mind games.

[svelte]

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.

It’s all mind games.

[svelte]

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.

It’s all mind games.

[svelte]

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.

It’s all mind games.

[XBoxBoy]

The point is to get you interested in a house that is more than your desired purchase price. For instance, say you were looking for a house around 700k. Your realtor might take you to place with value ranges of 699,000 – 849,876. You walk in and love the place, and make and offer for 700k. But then you’re told, no, they seller really wants a better offer and has countered at 830k. You end up settling for 800k because you really love the place. (At least that’s the way the realtors hope it will work out.)

Bottom line here is it’s a technique (gimmick?) to get buyers to look at more expensive houses. All part of the MLS games that get played.

XBoxBoy

[XBoxBoy]

The point is to get you interested in a house that is more than your desired purchase price. For instance, say you were looking for a house around 700k. Your realtor might take you to place with value ranges of 699,000 – 849,876. You walk in and love the place, and make and offer for 700k. But then you’re told, no, they seller really wants a better offer and has countered at 830k. You end up settling for 800k because you really love the place. (At least that’s the way the realtors hope it will work out.)

Bottom line here is it’s a technique (gimmick?) to get buyers to look at more expensive houses. All part of the MLS games that get played.

XBoxBoy

[XBoxBoy]

The point is to get you interested in a house that is more than your desired purchase price. For instance, say you were looking for a house around 700k. Your realtor might take you to place with value ranges of 699,000 – 849,876. You walk in and love the place, and make and offer for 700k. But then you’re told, no, they seller really wants a better offer and has countered at 830k. You end up settling for 800k because you really love the place. (At least that’s the way the realtors hope it will work out.)

Bottom line here is it’s a technique (gimmick?) to get buyers to look at more expensive houses. All part of the MLS games that get played.

XBoxBoy

[XBoxBoy]

The point is to get you interested in a house that is more than your desired purchase price. For instance, say you were looking for a house around 700k. Your realtor might take you to place with value ranges of 699,000 – 849,876. You walk in and love the place, and make and offer for 700k. But then you’re told, no, they seller really wants a better offer and has countered at 830k. You end up settling for 800k because you really love the place. (At least that’s the way the realtors hope it will work out.)

Bottom line here is it’s a technique (gimmick?) to get buyers to look at more expensive houses. All part of the MLS games that get played.

XBoxBoy

[Doofrat]

If you have a range, it increases the chance that somebody will see it if they are searching for something in that range.
If you list it for 899,000 and somebody is looking for something for 799,000, they will not see your house in the search unless you use a range. (That’s what I was told here)

All the listings should just say: “It’s a free market, therefore, seller will take whatever a buyer is willing to pay if he wishes to sell the house.”

[Doofrat]

If you have a range, it increases the chance that somebody will see it if they are searching for something in that range.
If you list it for 899,000 and somebody is looking for something for 799,000, they will not see your house in the search unless you use a range. (That’s what I was told here)

All the listings should just say: “It’s a free market, therefore, seller will take whatever a buyer is willing to pay if he wishes to sell the house.”

[Doofrat]

If you have a range, it increases the chance that somebody will see it if they are searching for something in that range.
If you list it for 899,000 and somebody is looking for something for 799,000, they will not see your house in the search unless you use a range. (That’s what I was told here)

All the listings should just say: “It’s a free market, therefore, seller will take whatever a buyer is willing to pay if he wishes to sell the house.”

[Doofrat]

If you have a range, it increases the chance that somebody will see it if they are searching for something in that range.
If you list it for 899,000 and somebody is looking for something for 799,000, they will not see your house in the search unless you use a range. (That’s what I was told here)

All the listings should just say: “It’s a free market, therefore, seller will take whatever a buyer is willing to pay if he wishes to sell the house.”

[Doofrat]

If you have a range, it increases the chance that somebody will see it if they are searching for something in that range.
If you list it for 899,000 and somebody is looking for something for 799,000, they will not see your house in the search unless you use a range. (That’s what I was told here)

All the listings should just say: “It’s a free market, therefore, seller will take whatever a buyer is willing to pay if he wishes to sell the house.”

[EJ]

I forget where I saw it but someone was suggesting using the range to come up with a low-ball offer price.

UR = upper range
LR = lower range
OP = offer price

OP = LR-2*(UR-LR)

I thought it was funny but maybe it is valid. Can we compare sold prices with original listing range price somehow?

[EJ]

I forget where I saw it but someone was suggesting using the range to come up with a low-ball offer price.

UR = upper range
LR = lower range
OP = offer price

OP = LR-2*(UR-LR)

I thought it was funny but maybe it is valid. Can we compare sold prices with original listing range price somehow?

[EJ]

I forget where I saw it but someone was suggesting using the range to come up with a low-ball offer price.

UR = upper range
LR = lower range
OP = offer price

OP = LR-2*(UR-LR)

I thought it was funny but maybe it is valid. Can we compare sold prices with original listing range price somehow?

[EJ]

I forget where I saw it but someone was suggesting using the range to come up with a low-ball offer price.

UR = upper range
LR = lower range
OP = offer price

OP = LR-2*(UR-LR)

I thought it was funny but maybe it is valid. Can we compare sold prices with original listing range price somehow?

[EJ]

I forget where I saw it but someone was suggesting using the range to come up with a low-ball offer price.

UR = upper range
LR = lower range
OP = offer price

OP = LR-2*(UR-LR)

I thought it was funny but maybe it is valid. Can we compare sold prices with original listing range price somehow?

[Author]

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