“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 didn’t 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 don’t 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, it’s interesting that you refer to “all the offers” you received. There are many homes out there that aren’t seeing any offers at all. So all those offers tells me not that value range pricing didn’t work, but that you weren’t willing to sell at a price that the market was bringing you.
Am I married to value range pricing?
No. And that’s because I have some clients who refuse it. And that’s OK. For those clients, we use traditional pricing.
Also, if a home isn’t selling, we keep trying new approaches. And sometimes that new approach is to switch to good old one-price pricing.
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