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Posted on: 28 August 2017

Determining a list price and marketing a home are two of the more challenging aspects of selling. To increase the odds of receiving bids, some homeowners opt for value range pricing. In some instances, it is a highly effective method of driving up interest in a home and getting a fair offer. For some homeowners though, using the marketing scheme can work against them. If you are thinking of using value range pricing, here is what you need to know.

Why Should You Use Value Range Pricing?

Value range pricing involves listing a range for your home instead of a set price. For instance, instead of listing your home for $175,000, you would list it for $150,000 to $200,000. The idea is that you appear to be negotiable on the price of your home. Instead of turning off buyers who are worried you want to much, you could appear to be more flexible, which could be attractive to those buyers.

There are several other benefits to value range pricing. One of the most beneficial is that you are likely to appear in more searches than before. Most potential buyers put in the maximum they are willing to pay in online searches for a home.

If your set listing price falls just beyond that search by a few thousand, those buyers will likely not see your listing. By contrast, if you list a range with a low end that falls within the search parameters, your home will appear in far more results.

The more potential buyers who see your home, the more likely it is that you will sell it quickly. The less time your home has on the market, the less you must spend maintaining it if you have already moved into a new home.

Are There Drawbacks?

Even though there are advantages to using value range pricing, there are a couple of drawbacks to consider. For instance, some potential buyers might be leery about submitting an offer for the lower end of the range out of fear there is a catch. They might believe that once the offer is submitted, you will change your mind about the sale price of the home.

Another possible drawback is that you only receive offers for the lower end of your range. It is important to note that you can possibly turn this to your advantage. Multiple offers can often lead to a bidding war that could result in your home selling for closer to or above your higher end range price.

Discuss value range pricing and other marketing tools with your realtor.