Range Pricing Information & News
Information from the Leading Experts in Range Pricing In Residential Real Estate
Inman News Interviews Carlton Lund On Value Range Pricing - 5-Time National Prudential VRM Champion and the foremost expert in pricing a home on a range - Full Article
Agents: Interested in Value Range Marketing Certification and/or Education
Contact "Dr. PVRM" at Carlton@LundTeam.com for more information
A Brief Overview Of Range Pricing
Value Range Marketing is a simple pricing strategy designed to bridge the gap between the Seller’s high opinion of value and the Buyer’s “low-ball” mentality. Thus, VRM opens the line of communication earlier than traditional fixed price listings, allowing the market dynamics to dictate the final sales price.
As a Seller, should I only expect offers at the bottom of the range?
For the most part, yes. However, the presence of several low offers may act as the catalyst in achieving a price above the prevailing rate. The Buyer knows that the Seller is obligated to respond to any offer within the range and is essentially free to open negotiations anywhere within the range that he/she feels comfortable. The Seller benefits by generating offers he may not have received due to the limitations of fixed pricing. Hypothetically, if a Buyer falls in love with a particular property, tenders an offer and receives a reasonable counter from the Seller, that Buyer will continue negotiations until a satisfactory price is attained. VRM is statistically proven to produce sales all the way from the bottom to the top of the range. Furthermore, a majority of Buyers recognize the value of a property and submit a first offer well above the bottom of the range.
As a Buyer, why would I submit an offer above the bottom of the range?
For the same reasons that he/she would not submit a low offer on a traditional fixed-price listing. Those reasons include embarrassing oneself or their Buyer’s Agent, losing the property in a competitive or multiple-offer environment, or the risk of receiving a high counter from the Seller. A Buyer’s Agent usually assembles a CMA (current market analysis) for the Buyer to demonstrate and prove the value of a property. Moreover, once a Buyer has had the opportunity to view several properties, he/she will understand how the VRM listing compares to the active inventory. Hopefully, a starting point will develop upon absorption and digestion of the available information.
As a Seller, am I obligated to accept any offer within the prescribed range?
Absolutely not. Per the marketing verbiage, the Seller agrees to entertain or consider all offers within the range. In other words, the Seller promises to respond in writing to any offer in the range, thus paving the way for further negotiations and an ultimate mutual agreement. The Seller is under no more obligation to accept an offer under VRM than he/she is using a fixed-price technique.
As of December 31, 2005
Source: Sandicor Value Range Marketing Statistics
*Single Family Detached & Single Family Attached homesLocated in the San Diego County Area
56.45% Market Share
News of Value Range Marketing
1) North County Times: All Articles On Value Range Marketing
Click Here All North County Times VRM Articles
2) The San Diego Union-Tribune - Sunday, May 25, 2003
"Value Range Marketing Benefits Both Buyers and Sellers"
Click Here For Full Article
3) The Daily Transcript - San Diego - Friday, August 15, 2003
"From Value ranging to 'unpolished jewel"
Click Here For Full Article