Buyer Feedback Ranging has been around now for some years. It is considered by many to be the fairest way for both seller and buyer to begin negotiations.
Rather than the seller placing an unreasonably high asking price on the property that does little more than discourage buyers from inspecting, a wider “expectation” range is used. This Buyer Feedback Range is usually based around the average market prices in the area and it allows the purchaser to make an offer, within the range, at a price that he or she thinks is reasonable. This price may either be accepted immediately or will become the basis for negotiations to begin.
Rather than buyers missing out on properties because the seller is asking too much, Buyer Feedback Ranging opens up the market place. It allows the buyer to not only see properties that would normally be missed, but also to start negotiations based on where they think the property compares rather than at the sellers price. Ultimately, this is good for the seller because buyer inquiry is increased with market demand depicting the price and for the buyer because they get to see more properties and negotiate from a level playing field.
With Buyer Feedback Ranging, the general guide is to compare the property to others you have seen and make an offer based on what you think it is worth rather than just starting at the bottom of the range.