Value range pricing, the strategy that prices a home with a high and low price, is making a comeback in today's changing real estate market. Range pricing was the dominate method to price real estate in 2005. About 56 percent of the active for-sale homes used a high and low range. But range pricing became less popular in the declining markets of 2008-2010. Banks did not utilize a range on their foreclosures, while homeowners were reluctant to use a range for fear that buyers would bid under the already low bottom range.
Range pricing is experiencing a renaissance in San Diego with 20 percent of currently for-sale homes. The pricing strategy worked wonders in helping secure more bids and push pricing higher during the height of the market in 2003-2005.
The high/low strategy encourages more buyers to tour a property. Even if only to "bottom fish" the low price, the owner has an increased opportunity for an emotional attachment to occur in the potential buyer. Agents in today's market are using range pricing to raise the price of their listing with a higher top-end range and set the bottom range around recent sales. A bidding war is often driving the final price to, and even over, the top part of the range.
Range pricing is experiencing a renaissance in San Diego with 20 percent of currently for-sale homes. The pricing strategy worked wonders in helping secure more bids and push pricing higher during the height of the market in 2003-2005.
The high/low strategy encourages more buyers to tour a property. Even if only to "bottom fish" the low price, the owner has an increased opportunity for an emotional attachment to occur in the potential buyer. Agents in today's market are using range pricing to raise the price of their listing with a higher top-end range and set the bottom range around recent sales. A bidding war is often driving the final price to, and even over, the top part of the range.