Value Range Pricing can Increase Your Buyer Pool and Raise Your Sale Price
Looking to buy or sell a home in San Diego, California? Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call us at (858) 386-4478 for a FREE home buying or selling consultation to answer any of your real estate questions.
Value Range Pricing: When & How to Use It
I am going to talk about one of the most widely misunderstood topics in the seller world. I am going to go ahead with you and demystify this concept known as Value Range Pricing. This is when you see those homes that are listed at $600,000 or $700,000, and you might be wondering why these homes are listed at these ranges. It's my goal to have you understand why this is done and what their use is.
When you do use a value range you have to understand that it is part of the greater marketing and listing strategy to get that home sold. This is why it must be strategic. A lot of agents don't understand why they're using one, they just see that it's being done and they use it. You need to have a strategy behind your pricing because it is one of the most crucial aspects of marketing your home.
You're not going to use a value range for every market. For example, back in 2010 and 2011 when the market was down, these price ranges were not attractive to buyers because they were not sure of the value, and this made them question whether or not they were getting a good deal. I wasn't a huge advocate for these back then, but they have grown on me now.
There is a big reason to use these today because it helps us do 2 things: (1) capture a new audience and (2) get multiple offers.
Let's walk through this. If you're priced at one number, you will only attract buyers that are looking at that certain price. However, if you have a range of buyers, you're going to be able to capture a whole different set of buyers that you would not be able to if you priced on a certain number. Buyers that weren't aware of the property or that weren't comfortable with the price would now be much more inclined to look at your property. It's also not only going to capture buyers that want a more affordable price, you will capture buyers willing to spend more money, too.
With more buyers and more showings on your property, you will hopefully get more offers. When you get multiple offers on your property you can then leverage buyers against one another and hopefully create an auction effect where buyers will continually be raising their offers and increasing your sale price.
When you use a value range you need to have a specific goal in place and also a specific price range that you will be using to capture a wider audience with.
If you have any questions about how you can utilize Value Range Pricing, please contact me and I would be glad to explain this topic in further detail.
Also, if you're looking to buy or sell homes in San Diego, then please contact me and I would be more than happy to help you out.