Some of our San Diego listings site visitors have called in a bit confused because instead of seeing a price for a San Diego home for sale they are seeing ranges. This range pricing is a marketing technique that has been around for nearly a decade and the formal name for it is Value Range Marketing. It is very prevalent here in San Diego and the reason why is simple - it creates a comfortable negotiation environment between the seller and the buyer.
You may ask “Why would I offer more than the bottom range or I offered what was in the range why didn’t the seller accept the offer?” An agent on our team would explain it this way to you – “If the property has been on the market for 120 days then perhaps the seller would be open to an offer at the bottom of the range, but if that home was just put on the market last week it would be rare for the seller to do so. The range is the seller’s way of displaying the pricing they are comfortable with, but does not bind them to having to accept an offer just because it is in the range. For instance, say you offer the seller a price in the higher part of the range, but you also are contingent and needs 90 days to close. In a case like this the seller may not accept the offer and wait to find a buyer that is not contingent and has a shorter escrow time frame. ”
If you see a San Diego listing that interests you, whether it’s in Value Range Pricing or not, the first thing a buyer should do is review recent comparable home sales with your San Diego Real Agent (we do this as a matter of course) and then decide how much it’s worth before committing an offer to paper.
The Good News is that when a buyer makes an offer the negotiation has begun and the buyer and sellers will have their Agents to help guide them through the process and towards the common goal of a positive end result – a happy new homeowner and a satisfied seller!
Value Range Pricing is nothing to fear, should you like more information or explanation an agent on our team would be happy to help you!
1 response so far ↓
1 Me in the New York Times! // Sep 10, 2007 at 5:41 pm
[...] wrote about Value Range Pricing on the blog just a few sort weeks ago, the piece was spotted by a New York Times writer and she [...]
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