Variable Range Pricing

User Forum Topic
Submitted by Steve Beebo on October 12, 2006 - 7:33pm

Submitted by waiting hawk on October 12, 2006 - 8:01pm.

No wonder why this guy didnt sell. He didnt range it

http://www.ziprealty.com/buy_a_home/logg...

Price Reduced: 07/18/06 -- $497,990 to $489,000
Price Reduced: 07/20/06 -- $489,000 to $479,000
Price Reduced: 07/26/06 -- $479,000 to $471,500
Price Reduced: 08/02/06 -- $471,500 to $458,990
Price Increased: 08/07/06 -- $458,990 to $489,000
Price Reduced: 08/12/06 -- $489,000 to $447,500
Price Reduced: 08/31/06 -- $447,500 to $439,000
Price Reduced: 09/13/06 -- $439,000 to $438,999
Price Reduced: 09/15/06 -- $438,999 to $424,990
Price Increased: 09/20/06 -- $424,990 to $427,215
Price Reduced: 09/23/06 -- $427,215 to $424,990
Price Increased: 09/25/06 -- $424,990 to $427,215
Price Reduced: 09/29/06 -- $427,215 to $424,990
Price Increased: 10/02/06 -- $424,990 to $427,215
Price Reduced: 10/03/06 -- $427,215 to $419,000
Price Reduced: 10/05/06 -- $419,000 to $408,990

My website tracking Inland Empire

Submitted by powayseller on October 12, 2006 - 8:39pm.

The guy's story is an improper analogy. First, he places a more expensive car into a lower range price, whereas in reality buyers overprice and not underprice. Mr. Sell A Lot, if he were a like a home seller, would price his $1.95 cars at $1.95 to $2.50, so of course he should be offered only $1.95. Second, Mr. Sell A Lot is not the only toy dealer in town, and the kid in the story would have gone to Toy Lots across the street which had 15% off those same cars. Mr. Sell A Lot is on his way to being Mr. Sell Nothing, since he refuses to have sales or lower his prices in any way.

Por favor, waiting hawk, please put your links in html brackets, because the long links make the pages too wide and very difficult to read. link instructions . This page is so wide because of your long url above.

Submitted by no_such_reality on October 12, 2006 - 9:11pm.

I thought the analogy was great.

imagine Mr. Sells-a-lot shock when Mom doesn't give Bobby the quarter and Bobby doesn't come back for another car either...

Of course, there is one complete piece of truth in the analogy. The sucker variable pricing scheme only works when the buyers are thinking like a child for managing their money and their wants.

Submitted by FutureSDguy on October 12, 2006 - 9:38pm.

That article is a bunch of big time hooey!!!!! What a bunch of baloney sauce. The high end on that is a made up inflated number and only idiotic buyers would feel that they got a good deal by negotiating down from that. Folks, it's the lower end that matters. Nothing else.

"Why would a Buyer offer and pay more than the bottom of the Range? Because they do!"

Blah blah blah blah.....

Submitted by lendingbubbleco... on October 13, 2006 - 11:38am.

Neat-o Beebo....

Let me know when those cars down get down to a "buck" and then you'll have my interest.

Submitted by treylane on October 14, 2006 - 8:19am.

This just makes realtors look like slimeball car salesmen. The buyers are going to recognize this as BS once prices come down and it'll go out of fashion again.

I CAN see this used to work around a seller's pie-in-the-sky ideas of what their house is worth though.

Submitted by FutureSDguy on October 14, 2006 - 9:32am.

If you go to activerain.com and read this guy's blog, you can see how cheeseball he is. "Never does open houses" and "don't call me after 8" are examples how a Realtor(R) feels like he's in the center of the game. He even says he expects buyers to pay the difference whenever he takes them to a house with a lower buyers %. He even says to his client "go ahead and host your open house--if you find a buyer who's not represented, i'll even give you a discount. And the client is thrilled!" He tells other realtors how to make sure clients sign the agreement before you go too far. He brags on how many listings he has, which gives further evidence that when you have an exclusive relationship with sellers, it doesn't really matter how long it takes to sell.

What's even more surprising is all the comments from other realtors applauding his site.

This is orthagonal to service and quality. I'm talking about attitude. This will go away once you get rid of the built in commissions. Arrogance persists when you have guarantees of income up-front.

Yes, I know everyone is not like this. The honest folks exist, but they are hard to discover, esp. since they don't want to divulge their "trade secrets" online (understandable).

Submitted by noone on October 14, 2006 - 9:36am.

What I got out of that article is that Mr. Sell A. Lot is an a**hole, a liar, and a crook who out to be thrown in jail, or at least the kids dad ought to punch him in the face. The number of replys on that page that say they "get it" just shows that these folks are all going to burn in hell. At least Christine on that page sees through it.

One good thing is that it gives me some insight, and lets me know what to expect when I see these range prices.

Submitted by FutureSDguy on October 14, 2006 - 6:13pm.

High end of range? What high end? I don't see any high end. I just see one price. Here's my offer. :)

Tempers aside, the problem I have with range pricing is that they are trying to get search hits on a higher priced home among lower priced homes (this is said in the blog). As a buyer I would like to know "what's your asking price?" If the seller says asking = (max+min)/2, then I will feel that that information should have been advertised.

Frivilous point? I don't think so. The buyer has a budget and sets a maximum price on a query of asking prices. A house makes it into that query but doesn't belong there. Sort of bait and switch, but not exactly.

This is telling from Bryant: "Jon, your statement 'the low side was still overpriced' is exactly why a lot of Realtors do not use RP successfully" So if the low side is deemed overpriced, then that is equivalent to saying the low side needs to be underpriced. But then "underpriced" value is put in the same bin with real asking prices. This proves my point and MLS should not be allowing this. It's intent should be to share information to the buyer--hiding the true asking price is not consistent to the purpose of MLS.

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