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    Price Ranges Or Buyer Enquiry Ranges
    by Rob P Williams


    A hot topic at the moment is "Price Ranges" or "Buyer Enquiry Ranges"

    Are they good for me as a seller?

    These are where homes are not offered at a set price bur rather in a range.
    Say for example a home that has a market value of around $350,000 was for sale using a price range; the agent would suggest that it be presented for a range of $325,000 to $375,000.

    The theory is that lots of buyers will be attracted by the lower price and once they fall in love with the home they will happily pay the higher price!

    "Yes of course they love it at $25,000 below its market value" who wouldn't?

    The reality is now that they want to buy it for $25,000 below market value, a problem created by the price range suggesting that the lower price would be considered.

    You see the fundamental difference between the seller and buyer is the seller wants the higher price and the buyer wants the lower price.
    Quiet often most of the buyers are only able to afford the lower end of the range and that can result in a significantly lower selling price.

    Why do agents suggest this method?

    One reason can be to create activity, which gives the appearance they are doing a great job. From this activity you will almost certainly get some offers, of course they will be too low!

    But, after hearing these low figures for a while you start to believe that perhaps this is really what your home is worth. It is also now easier for the agent to talk you down and get you to accept a lower offer.

    One thing to keep in mind when selling "anything" never ask for less than you wish to receive!

    Rob Williams is the founder of Independent Real Estate Consulting (IREC), an independent body established to help consumers in Australia in their real estate dealings. IREC also provides an opportunity for sellers to avoid paying excessive real estate commissions through a unique referral system. Rob Williams has over 20 years of real estate experience and developed the business after witnessing increasing consumer demand for independent, impartial real estate advice and guidance. Visit http://www.irec.com.au

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