“My home just went off the market after 6 months. I have to say my agent worked at it, but he suggested value range pricing and it didnt work. All the offers were in the low end of the range. Why do people think value pricing works?
***ANSWER:
Studies have shown that homes marketed with value range pricing sell for slightly more money and sell a few days faster. (I dont know the precise figures.)
Most people searching for a home to live in are willing to pay what a home is worth. Sure there are exceptions and everyone would love a good deal.
So even though they may start at the low end of the range, most will ultimately pay the fair market value, regardless of the range.
Why does it work?
Value range marketing is really a stroke of genius. You get the benefit of an attractive low price that gets more people in the door, and a high price that gives you plenty of negotiating room.
By the way, its interesting that you refer to all the offers you received. There are many homes out there that arent seeing any offers at all. So all those offers tells me not that value range pricing didnt work, but that you werent willing to sell at a price that the market was bringing you.
Am I married to value range pricing?
No. And thats because I have some clients who refuse it. And thats OK. For those clients, we use traditional pricing.
Also, if a home isnt selling, we keep trying new approaches. And sometimes that new approach is to switch to good old one-price pricing.
