When you see a listing that states; “ Seller will accept or counter offers between $599,000 and $639,000 “ you’re looking at a home that is range priced. In other words the seller is stating they will only consider and respond to offers that fall within the specified range.
It’s a strategy that some agents believe will limit the offer price to within the stated range and hopefully encourage offers above the bottom of the range. But, most importantly, the point of it is to eliminate so-called low-ball offers, offers under the bottom of the range.
I think range pricing may make sense when you’re in a hot market, when supply is low and demand is high. In that case it could encourage buyers to consider offering more than the bottom of the range and could lead to a higher sale price. But oddly enough range pricing was at its most popular during 2009 – 2011, when the market was at its weakest. And of course the effectiveness of it during that time was nil, laughable really.
But does it work in today’s market
See for yourself from this heaping handful of examples;
5451 N Paseo Pescado, Tucson, AZ 85718
”Seller will accept or counter offers from $489,500 to $504,500”
SOLD - $479,000
7107 N Chimney Rock Place, Tucson, AZ 85718
”Sellers will entertain all offers between $490,000 and $509,000”
SOLD - $480,000
4637 N Camino Cardenal, Tucson, AZ 85718
”Range price, seller will accept or counter offer between $499,000 to $520,000”
SOLD - $495,000.
7521 E Placita Ventana Hayes, Tucson, AZ 85750
Seller will accept or counter offers between $499000 and $529000
SOLD - $490,000
3005 E Cerrada Los Palitos, Tucson, AZ 85718
”Range Priced~Seller will accept or counter offers between $500,000-$525,000”
SOLD - $505,000
2705 E Camino La Zorrela, Tucson, AZ 85718
”Sellers will counter or accept offers between $500,000 to $560,000”
SOLD - $525,000
And those are homes listed and sold in the $400 - $500’s a hot segment of the market. And still range pricing was more often ignored than adhered to.
Jumping up a notch or two in price;
2850 E Calle Sin Pecado, Tucson, AZ 85718
”Seller will accept or counter offers between: $735,000-835,000”
SOLD - $735,000
4358 E Pinnacle Ridge Place, Tucson, AZ 85718
”Seller will accept or counter offers between $887,000-$949,000”
SOLD -$900,000 (no surprise that range pricing worked in Pinnacle Ridge - a community with low supply & high demand)
5543 N Camino Real, Tucson, AZ 85718
”SELLER TO NEGOTIATE OFFERS BETWEEN $900,000-940,000”
SOLD - $900,000
6525 N Longfellow Drive, Tucson, AZ 85718
”Seller will accept/counter offers between $995,000-$1,065,000”
SOLD - $980,000
6254 N Sabino Shadow Lane, Tucson, AZ 85750
”Entertaining offers between $1,249,000 - $1,299,000”
SOLD - $1,185,000
So, for the most part, range pricing didn’t do a helluva lot to prevent buyers from making offers under the range or to prevent sellers from accepting them. And even those few that sold at or slightly above the bottom of the range may well have started below the bottom.
The point is, if you see a home that you like that’s range priced, but you don’t like the range, don’t be discouraged, go for it. There’s no law that says you can’t offer under the range. And there’s a fair amount of evidence that often, when push comes to shove, sellers cave.
see TheFoothillsToday.com
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