Buying a San Diego home? Search all homes for sale
Today, I want to cover the topic of value range pricing, which is a very strange and particular strategy for pricing homes that is dominant here in San Diego. At one time, this was a rare way to price homes, but now about one in five homes are priced this way.
With value range pricing, the seller makes it known that they will entertain offers between, say, $500k-$550k. There is a spread of prices that is typically around 5% of the total value of the home. For home sellers, this is a very effective tool because they’re opening the door to many potential buyers.
When buyers or agents do their searches, a home that utilizes value range pricing is more likely to show up because it isn’t stuck at one price or at one particular price point. Once a buyer shows interest, the seller has a lot of negotiating leverage because of the unstated price.
Buyers don’t typically love this strategy, but if the home is in great condition and within a fair range of prices, it’s not going to stop them from making an offer. It works great for sellers because studies show that they tend to get a slightly better price and in less time.
People who are selling sometimes push back against value range pricing because they are worried they will get lowballed. You should know that, at least in my experience, while some offers come in below the bottom of the value range, other offers are often submitted throughout the range and some even go over the top value set by the seller. The real value of the home is what a buyer is willing to pay for it, and this strategy often works to get the best offers out of buyers.
If you’re selling a unique home or a hard-to-price home, or if you’re in a market where things are unpredictable, I highly recommend using value range pricing to sell your home. We’ve seen a lot of happy homeowners who have used this strategy to great success and we would love to help you do the same.
For all your real estate questions and concerns, please don’t hesitate to reach out to us. We would love to hear from you!
