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Pros and Cons of Giving Buyers a Price Range

Stafford Aslam April 25, 2018 0

Buyers Price Range

Selling your home in a buyer’s market isn’t an easy task. In fact, many people get trapped in this market trying to sell their homes for months without finding any success. However, one major reason home sellers face difficulties is due to lack of planning. In order to make a smart deal, you first need to become an educated seller.

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Selling a home isn’t a walk in the park. You need to strategize and research the market thoroughly. If you set your price on or above the actual value, I’m afraid you’ll just end up with a place that won't budge and increase… Click To Tweet

On the other hand, if you adopt a flexible pricing tactic like the value range home-selling strategy, your chances of selling off your home faster and having the edge over other sellers will rise. This strategy involves setting a high and a low point price for a property that the seller expects for his home. This strategy has become very popular in recent years. Here are a few pros and cons that are associated with using this pricing strategy for selling homes.

Pros

  • It shortens the time of the property remaining unsold. Price ranges encourage people to make an offer for your home. Wondering how? For g., if you set a fixed demand of $177,000 for your property, only those buyers that have this kind of money might approach you. Buyers with only $150,000 will never try to make an offer to you. However, if you had set your price range from $155,000-$180,000, then you’ll experience many more calls from buyers with reasonable offers.
  • Your property can be involved in a bidding war. If you start receiving offers from multiple buyers at the same time, they may even begin making bids to beat each other’s quotes. However, this also depends on the quality and value of your property. If you own a valuable property that has a well-built luxurious house on it, buyers will come running to buy the place from you.
  • You’ll also attract buyers from different ranges. Usually, people look for homes in various price ranges. You won’t normally find someone ask for a home for $150,000 directly. That individual will also prefer looking for places that come within the $125,000-$150,000 range. You can benefit from this if you set a price that comes under two ranges. For e.g. if your price range is $135,000-$165,000 you’ll attract people from both $125,000-$150,000 and $150,000-$175,000.

Cons

  • Many sellers fail to utilize this pricing technique properly and end up scaring off potential buyers. Your first job as a seller is to study the market and analyze the value of your home. If you are unable to do it on your own, visit a nearby estate agency that can help you in determining a reasonable price range. By setting an unreasonable high point price, it will eventually hold back your place from getting sold.
  • Chances are, many buyers will make you offers close to the low point price. If you believe that with this method you’ll only receive well to average offers, then that’s not always going to be the case. Since your price ranges will attract buyers from different fields, you can get offers anywhere in the range. Some may even ask for it for the exact low point of price. If you feel that this is happening more often, then its time you make changes to your price range.

Takeaway

You simply can’t afford to keep your home up for sale in the market for too long. Prices go up and down every now and then—you wouldn’t want to get trapped in this fluctuating industry. Therefore, use the value range home-selling strategy with a proper plan and complete research. Don’t rush into this process or else you may end up with a wrong price range that may waste your time and delay your plans for moving into a new home.

With proper planning and a reasonable price range, you can get good money for your home and still manage to sell it off as quickly as possible.

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