Value Range Pricing (VRP) is a pricing strategy used by listing agents. Rather than listing a property at a set price, the property is given a range in which the seller will consider offers. Ideally the seller wants the higher price, but they will also consider offers at the lower price in the range.
There are many mixed feelings about value range pricing by buyers, sellers, & real estate professionals.
Buyers may find VRP misleading and confusing. Sellers may find it attractive because it solicits more interested buyers.
Other proponents of VRP pricing may make the argument that a fixed asking price is nothing more than a ballpark figure to begin with, & that VR pricing takes the mystery out of the equation, creating less confusion for buyers. It helps facilitate negotiation & encourage offers.
On the flip side, opponents of value range pricing see it as misleading, confusing, for buyers. They also feel it can be frustrating for sellers if they are hoping for offers closer to the higher price in their range, but only receive offers closer to the lower price.
Whether you are a proponent our opponent of value range pricing, the key is to educate yourself on the details.
Are you a buyer trying to navigate the local real estate market & better understand value range pricing?
Are you a seller hoping to understand your options with value range pricing ?