Price ranges are ‘Bait” strategies which use a false low price to attract buyers.
The price range method comes in a variety of names – By Negotiation; Offers Over, Price Guide. They all undersell your home.
Say you want $300,000 for your home. The agent will suggest that your home display; Price Range $275,000 – $325,000. The agent will say “lots of buyers” will be attracted by this lower price and then willingly pay the higher price. Bait prices which are supposed to hook buyers, actually hook sellers into underselling their homes.
‘Price Ranges’ have quickly fallen out of favour as most home sellers are quick to realise that buyers are not so gullible as to fall for such a transparent trick.
Agents who suggest using a Price Range are not skilled negotiators. If they were, they wouldn’t use such a financially damaging strategy.
Here at Bruce Harry Real Estate we know that using this method of sale has several disadvantages for the home seller. One main reason is that the lowest price the buyers see is the highest price they will want to pay.
How would you feel if you saw a home advertised for “offers above $250,000”. Would you willingly want to offer $320,000 just because it was “above” $250,000? Of course not you would see the $250,000 and do what most buyers do – offer $250,000 or less. Another reason we don’t believe this is the most advantageous method is because it will mostly attract buyers that can only afford the lowest price advertised.
At Bruce Harry Real Estate we want to find you the buyer that is able to pay the highest possible price for your home more importantly we do not want you to undersell your home. We always set an asking price this ensures the potential buyer knows that this is the amount they need to have in order to secure the purchase of you home. We qualify all buyers from the first point of contact. We do not want to mislead the buyers by allowing them to think they can potential buy your home for a low price. At the same time we don’t want to mislead you by telling you we have had a lot of interest in your home however the buyers cannot afford the property.
Don’t make the mistake of misrepresenting your home which then leads to underselling. Call into our Holland park office for more information on getting the highest price for your home.