"Broker Bryant, How much do you think our home is worth?" "Well, Mr. Need T. Sell, I think you house is worth about $260,000. However, I'm not here to tell you what your house is worth, I'm here to tell you how much your house will sell for. In my opinion, I think we should Range Price your property from $239,000 to $259,000 trying to sell as close to $250,000 as possible." He says in shock, "Broker Bryant, are you crazy? I just had it appraised 6 months ago and it appraised at $275,000! There is no way I am giving my house away at $250,000."

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Range Pricing. “The Lovely Wife” wrote a great post yesterday explaining this technique and how it works for us, to sell properties. This seems to be a subject that some Realtors are just having a hard time getting their heads around. So, with that in mind, I am going to try and address one of the questions, in a different manner, to see if it will help. The biggest question seems to be “Why would a Buyer offer and pay more than the bottom of the Range?” Now I agree this is a good question. So I am going to tell you a story about Little Bobby. Hopefully, this analogy will help shed some light on this. It helps to remember, that purchasing a home, is as much an emotional decision as it is a financial decision. People want what they want and in a lot of cases, people want what they can’t have. This is human nature and I hope everyone agrees with this. Ok, here goes.

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   Have a listing you can't sell? Make that property "Home home on the range". 

As a user of "Range Pricing" let me see if I can explain how it works and how it lowers my days on market and usually results in a higher selling price for my Sellers.

"Range Pricing" is a marketing technique used to generate more showings on a property. As you know if they don't see it they can't buy it. The goal is to get the property to show up on MLS searches more often. This way Realtors can see the photos and property details and make a decision on whether or not to add it to their showing lists. You do have to disclose in the first line of remarks that the property is Range Priced.

Example: Lets say that the true Market Value of a home is $257,000 to $259,000. Usually the listing Realtor will list this in the low 260's in order to negotiate a selling price in the high 250's. Now let's say a Buyer walks in to another Realtors office and is looking for a home with the same parameters as the one listed but tells the Realtor he does not want to pay more than mid 250's and lets say the Realtor searches for homes with maximum list price of $260,000. Your listing will not show up!!!!! In reality if the Buyer sets a goal of $255,000 and the Seller's target is $259,000 there is probably a deal in there somewhere. But because of the way it was priced the Buyer never had the opportunity to see this property!!

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