Long Days on Market - Good or Bad for Buyers?

Range Pricing in Tucson - Why?

October 27, 2008

Okay. I’ve talked about range pricing before. Admittedly, it isn’t my favorite, because I see it used incorrectly most of the time.

Range pricing was invented in a rapidly changing market where it was hard to pin down a value, but you knew it was somewhere between X and Y, with market value somewhere in the middle. Used properly, I’m okay with that. You can also use range pricing as a marketing tool, especially if you think market value for your home is just over a common limit that home buyers search for. For example, if I’m fairly sure a home’s value is between $255k and $265k, I might range price it from $250k-$265k to make sure that those people only searching up to $250k see that house when they search for homes online.

However, when I see a $50k price range spread on a $250k house, in a community of very similar homes with plenty of comparable sales, then there’s something very wrong. On that kind of house in that price band, you can narrow down value to a range much smaller than $50k.

All the seller is promising to do is accept or counter offers received within that range - which doesn’t obligate a home buyer to make an offer within that range. As with all homes, we’ll do our own market research, decide on a probable value, and make offers accordingly.

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