Mobile Realtoreality

For a couple of years now I have noticed more listings with a value range pricing. This is a concept that's tough for me to grasp. I know of at least one major Real Estate company in Mobile that has been practicing this strategy for a few years. And there are others following that same lead now, I'm sure. But what's the point?

I can't see signing an agent agreement listing my home with a price range of $20,000 - $30, 000 or more. I'm sure there must be some logic behind the move. It just escapes me.

One argument found recently --

In a market flooded with homes that don’t sell for months and sometimes years, some weary sellers are trying to entice buyers by listing their houses with a price range instead of a fixed amount, according to Gannett News Service.
Called “range pricing” or “value range marketing,” the practice gives potential buyers a range that the seller finds acceptable. The process encourages open negotiations with a seller who will come down in price and a buyer who will go up. Compromises and amenities are frequently negotiated to reach a final price that is acceptable to both parties.

But I tend to agree with the prognosticators saying "why would a buyer walk in and make an offer on the top price when perhaps they could purchase the property at the lowest end point price?" Why not just price the home at a true adjusted market rate or a little below market and let the negotiations begin? The concept has to be very confusing to buyers. And in today's market, the last thing any agent wants to do is confuse potential buyers.

Here is a link to a recent article on value range pricing -- More agents here using value range pricing

On another troubling note. Recently I posted about the false information provided by numerous national real estate web sites. While researching value range pricing this morning I visited one such site. I typed in my current home address and was surprised to find a couple of interesting facts --

First off, the site did not report the correct bedroom/bathroom count, or correct square footage. Secondly, the price range value was almost $80,000 -- Interesting, but extremely troubling. Are these site really useful to potential buyers searching the internet for homes? I am not sure from where the information for these sites is abstracted and I'll bet you could go to two or three sites and find different results.

Sometimes I wonder when too much information available on the internet today is worse than not enough.