The Problem(s) With Price Ranges

 

“List Price: $325k – $350k”

There’s a trend afoot — at least amongst some listing agents — to market an upcoming listing within a price range, as opposed to naming a specific asking price.

I’m not a fan, for two reasons:

One. When the price is given as a range, Buyers immediately fixate on the lower end, while Sellers — surprise, surprise — immediately lock on to the high end.

Result?

A built-in impasse for the Buyer and Seller to surmount in any future negotiation.

Two. At least in my experience, the best asking price is one that elicits a nod of acknowledgement from Buyers and their agents.

As in, “Yup, that seems right.”

By contrast, shining on a spotlight on price invites skeptical Buyers to sharpen their pencils, while simultaneously suggesting that the Seller is unsure.

Think of it as the difference between a “.” and a “?” . . . .

See also, “Why I’m Not a Fan of Price Opinions.”



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