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 and it has proven to be a sure-fire method to create buyer competition and ultimately to achieve the best price possible for the property.
The pitfalls of traditional ‘fixed price’ selling are that the seller will almost always get less than their asking price and many buyers never take a look because they don’t think they are in with a chance. Keep in mind, history show that buyers usually spend between 5 and 10% more than they first planned. It’s also a proven fact that buyers make their ultimate decision based on emotion rather than price. In other words, if they love it, they will find a way to buy it.
Buyer Feedback Ranging between the ‘Top dollar’ price and the ‘bargain basement’ price will ensure maximum interest and is fairer to all parties as it allows buyers to view the property and to provide feedback, hopefully via an offer, at a price where they see the property value compared to other properties they have viewed.
And NO, very few people start at the bottom. They will usually compare your property to others they’ve seen and base their offer on where they think yours compares. Remember, they have got to see it before they will make an offer and Buyer Feedback Ranging is the best way to invite them to “have a look”!