Sales tactics for a sagging market.

Looking to sell a house or condo in a slowing market, but having trouble getting potential buyers in to look at your place? You might try Value Range Marketing a real estate marketing technique in which agents list a price range instead of a fixed price for a property.

“There are still plenty of skeptics and some outright opponents to Value Range Marketing (VRM), and the marketing technique represents just a tiny share of all U.S. property listings. But Lund said VRM is attracting a lot of attention with the slowing housing market.

He rattled off a list of market areas from which real estate professionals have contacted him in the past month about using VRM, among them: Vancouver, Canada; Golden, Colo.; Flagstaff, Ariz.; Ogden, Utah; Minneapolis, Minn.; and Staten Island, N.Y.”

I’m surprised to hear that this would work at all in a slowing market – I can imagine in a sellers market that giving a price range for a property may get more offers, but in a slowing market? Why would anyone offer anything over the lowest range listed?

“It’s the bigger net theory of fishing. It opens up the marketplace to more people looking at the property,” he said. Also, in a market that is subject to major swings in pricing, VRM can reduce the likelihood for price reductions, he said. “When market conditions are changing the way that they are, if you put a fixed price in it might only be valid for that day.”

I’m still skeptical – if prices are dropping in a market I’m not sure how giving a price range would eliminate price reductions, but if you’re feeling desperate give it a try!

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Anonymous
Anonymous
13 years ago

In any case, doesn't Value Range Marketing simply distill to "Best Offer Over" (BOO)?yep. and "Best Offer Over" is just wishful thinking anyways. Buyers set the price, not sellers. I think this is something that people tend to forget after a big boom run-up.

wannaget2calgary
wannaget2calgary
13 years ago

digi, quoting Georgia Straight: “has crashed like the Vancouver housing market will in six months” …

I think that’s quite significant! The idea has now become mainstream among those who like to talk about what is and what is about to be … will such a change in market psychology be enough to make it happen?

If so, we’ll need something better than Value Range Marketing. In any case, doesn’t Value Range Marketing simply distill to “Best Offer Over” (BOO)?

whatever.
whatever.
13 years ago

What is this, guess the number?
Somewhere between 200 & 500k.. Ok, I’ll give you 150.

How is this supposed to help sell in a drooping market again?

digi
digi
13 years ago

Off topic, but check out this movie review of ‘death of a president’ in todays Georgia strait:

review here

choice quote:
“They used to say that a picture was worth a thousand words, the idea being that images contain the concentrated essence of truth. Since the release of Photoshop, I would imagine that the evidentiary weight of photographs, for one, has crashed like the Vancouver housing market will in six months—a picture is now worth only a few hundred words, and then only when it is shocking.”