Comments on: Real Estate Value Range Pricing is Nothing But Deception

By: Bill Gassett

Bill Gassett — Sun, 01 Aug 2010 11:16:59 +0000

Kenneth – Did you just skim the article on value range pricing or actually read the whole thing? If you read the article you would understand that I am not just seeing value range pricing from my perspective but the consumers as well. I don’t know too many home buyers that want to plan to visit a home they think is on the market for $500,000 only to find out later that it is actually closer to $550,000 because the seller has different expectations.

One of the problems with value range pricing is that some MLS boards are not set up to handle this type of pricing. The Greater Boston MLS being one of them. The only way for a consumer to know if the home is value range priced when looking at various distribution channels through MLS is to read every line of line of detail on the listing. Many consumers do not do this and will just skim the most important things such as size, bed and bath count, lot size, etc. When looking at the price it will show the low end of the range and not the high end in the Boston MLS system. That is DECEPTIVE to a buyer.

There is a huge difference with marketing a product on Craigslist compared to marketing a home. You are talking apples and oranges! You may see an advantage of doing what you are with pricing on Craiglist for whatever it is you are selling. Homes that use this tactic are not selling quicker or for more money in my area. Wouldn’t that be a good measuring stick of it’s effectiveness. If this type of pricing scheme was so wonderful everyone would be doing it.

The last statement you made says it all – BUYERS WILL SEARCH INDEPENDENTLY. When we were the gate keepers of information before the advent of the internet we would suggest homes for buyers to look at. Today more often than not the buyer will tell me what homes they want to see because they have the access through the internet. When buyers don’t see the value range price they add a home to their list that they might otherwise not be looking at due to the price. Trust me Kenneth this pisses buyers off when they are informed.

By: kenneth

kenneth — Sun, 01 Aug 2010 10:25:10 +0000

I believe you are missing the real points and only seeing it from one perspective and that is the Realtors. Unfortunately with the advent of the internet it is easy for the consumer to cut out the middleman being the Realtor and pass the savings on to the buyer. From my personal experience it is the sale and not the seller that the Realtor is interested in. That said there are different tools that an internet savvy freelancer can use and value pricing being one. If used correctly and communicated correctly no one is deceived or upset. If there are only bids at the low end the seller must obviously settle for that price which is a sale. Yet if the property is of value at the middle to high end that will also be exposed. No wonder real estate agents are crying the blues with outdated sales models and commissions rather than change with the times. I have used this pricing with great success on Craigslist and am flexible to each unique product. If a house is in a neighborhood with comparable sales the those sales should set the market price. But if the house is set apart there is nothing wrong with using a range as long as the range is not extreme. You must remember the average consumer can use products like for sale by owner or list by owner on MLS for only a few hundred dollars. Most if not all buyers will search independently on the internet and drive into certain areas and neighborhoods as well. The game has certainly changed!

By: Bill Gassett

Bill Gassett — Fri, 18 Jun 2010 11:31:48 +0000

Ray you are lucky that you do not have value range pricing in your area. All it does is confuse the buying public and set false expectations for the seller.

By: Ray Roman

Ray Roman — Thu, 17 Jun 2010 22:30:27 +0000

Bill – Thanks for the great article. Here in Oklahoma we don’t see that at all. Such a disservice to the seller. I guess in this case “Incompetence is the Mother of Invention”.

Regards

By: Real Estate pricing ending in 900

Real Estate pricing ending in 900 — Fri, 23 Apr 2010 19:31:19 +0000

[...] [...]

By: Bill Gassett

Bill Gassett — Mon, 22 Mar 2010 21:28:50 +0000

Kathy – I agree with you completely and know that you have to deal with this kind of pricing far more often up in the Franklin/Wrentham area. I know there are a few agents that regularly use this pricing strategy. It is a really poor way of doing business especially when Realtors and their buyer clients hate it.

By: Kathy Stankard

Kathy Stankard — Mon, 22 Mar 2010 18:54:34 +0000

Bill–Thanks for the great post. I wholeheartedly agree with you. I have only seen a few occasions that seem to merit a value range pricing strategy but mostly it just turns buyers off especially in our current market. It truly does seem like a bait and switch or a way to stroke the seller’s ego. The excellent agent will lay out the facts regarding the how and why of pricing and be less concerned about being liked. We are hired to sell not to be a new friend…
Kathy

By: Sell Your Massachusetts Home in 70 Days Guaranteed?

Sell Your Massachusetts Home in 70 Days Guaranteed? — Mon, 22 Mar 2010 11:32:33 +0000

[...] is just another marketing gimmick that in some respects is no different than value range pricing. The difference being is that more times than not the list price is under the current market value [...]

By: Bill Gassett

Bill Gassett — Wed, 17 Mar 2010 20:33:14 +0000

Catherine & Barb – There are so many reasons why value range pricing is just a big gimmick that does nothing to help the seller move their home. It just creates a lot of confusion especially when the MLS does not allow this kind of pricing.

By: Barb Szabo

Barb Szabo — Wed, 17 Mar 2010 12:20:58 +0000

We don’t have that going on here either Bill, although it is an option in the mls fields. To me, it just gives the seller’s position away.