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Listing Price Range? What is that?

Price Ranges in San Diego Real Estate are becoming more and more common. My buyer and seller clients often come across properties that they are interested in that have something my clients don’t expect in the listing info and from-seller property communication.  As you guessed, it’s not a single list price:

List Price $500,000

Instead, in its simple and straightforward place they find what’s called a price range:

List Price:  $500,000-550,000

A buyer should not become troubled or perplexed by this. In fact, in my opinion, it gives the buyer an upper hand. At the end of the day, it is just more information for a buyer to work off of.  And what is buying a house, but negotiation. And what is power in negotiation but information?  A few examples for you.

With a Price Range, the seller is communicating, “[the higher number] is what we want for the house, and [the lower number] is the low end of the offer we’d consider. Or said more simply, we won’t be offended if you offer us [the lower number]”

SELLERS SHOULD USE IT:

  1. With the specific purpose of communicating that, “[the higher number] is what we want for the house, and [the lower number] is the low end of the offer we’d consider. Or said more simply, we won’t be offended if you offer us [the lower number]”
  2. In an attempt to bring buyers from a lower price range up to your range and in view of your home’s listing.  Say, you want $525,000 but you know in the area there are a lot of buyers’ budgets that go to $500,000.  A $499,000-$525,000 list price range would work here nicely.
  3. In the instance where their home’s value is very subjective and too difficult or dis-advantageous to pin down to one number.

STRATEGY I SUGGEST WITH MY SELLER CLIENTS:

When any of the above 3 options are in play with my client’s home, my recommendation is always to go to market with a single price at the top end of the range. This gives that buyer that sees the property immediately and falls in love less information and my clients a stronger negotiating platform.  If after 5-10 days we have no offers, we then migrate to the pre-agreed-upon price range.

BUYERS NEED TO KNOW:

Price ranges are great for my buyer clients. Offer strategy on a home with a price range depends completely on the amount of action, offers, and interest the home has seen.  Market time and list price history also come into play.  Simply, if there’s been a lot of interest and the home has just been on the market a day or two, the offer should be in the top or at the top of the range. If the home has been on the market a while and there are no other competing buyers, you can work the bottom end of the price range.

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I hope this information has been helpful to you. Listing Price Ranges are very common in the San Diego Real Estate Market, especially in the La Jolla and Del Mar areas. As always, every situation is different, these are just guidelines. Give us a call any time for more information 619.786.7361