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Why would someone offer higher than the low end of the seller's acceptable range?
This is something that was started by Prudential - can't comment on the effectiveness... Maybe a marketing ploy??
And no, the homeowners don't always accept the stated low end of the range
That is really interesting because I had thought the same thing. What is the purpose of setting a range like that, and are the sellers really serious about the range? A realtor from prudential told me that in general houses sell for at the higher end of the range, but I don't know how reliable that info is. I've seen public records of houses that sold mostly in the middle of the range and one less than the range.
I saw something like this when I was shopping for homes. When I asked "Why the range?", I was told that the sellers are willing to accept offers in that range, so if I am planning to offer less than the low end, it will be presented, but probably rejected.
One thing is that it will show up in the searches for sure. For example if you were searching only till 350k, this home would not have made the list, but now it does.
I agree with previous posters though that the owners are more than likely to not entertain any offers close to the bottom figure.
One thing is that it will show up in the searches for sure. For example if you were searching only till 350k, this home would not have made the list, but now it does.
I agree with previous posters though that the owners are more than likely to not entertain any offers close to the bottom figure.
Exactly. It's a ploy to get visibility on for a house on the MLS ..to get to people who have no interest in looking at a house at that price. It's ridiculous and stupid and the MLS should stop allowing realtors to to post listings that way. I wouldn't look at a house listed in that manner out of principal ...it's basically a bait and switch tactic.
I think it's meant to create the impression that the sellers will only accept "X" (the low end) which encourages people to bid higher, and also prevents buyers who aren't serious from throwing in bids. I think it's also supposed to create the impression that there will be multiple bids since you are giving a range.
I don't know effective it is here on LI. I think it may be more popular in other parts of the country.
In my experience it is rare that sellers will accept the low end of the range. The way that I have always interpreted it is that you can expect to get a counter offer if your offer is within the range. If it is below the range, they will probably not counter.
As explained to me by my Pru agent, the range is a strategy to get more visibility for your listing by having it span multiple price points. The thinking is if the buyer sees the house b/c its listed on the lower end of range, if they like it enough , the seller may be able to counter their bid toward the higher end. In my experience the range did get us more exposure though the offers we recieved were on the lower end of the range. We did counter them up a bit but not enough to get what we were after.
Exactly. It's a ploy to get visibility on for a house on the MLS ..to get to people who have no interest in looking at a house at that price. It's ridiculous and stupid and the MLS should stop allowing realtors to to post listings that way. I wouldn't look at a house listed in that manner out of principal ...it's basically a bait and switch tactic.
I agree. We bought a house a month ago after 8 months of looking. We NEVER looked or inquired about a house that had a range to the pricing...out of principal. To us it was a turnoff.
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