PVRM - Range Marketing
Berkshire Hathaway Home Services Regency Real Estate is the only local office that gives you the option of listing your home with a traditional fixed price strategy or offering your home in a range with Progressive Value Range Marketing*. Attracting more qualified buyers to your home means a quicker sale at a fair price. Progressive Value Range Marketing eliminates any concern of potentially over or under pricing your home. It mirrors the natural buying and selling process, and tends to reduce the number of days a home is on the market. This proven marketing strategy encourages buyers to make an offer on the property and begin the negotiating process. Regardless of which pricing tactic you initially choose, marketing strategies can be switched at any time during the marketing period.
* This is an optional strategy that may or may not be something that you want to consider. We feel that it is important to offer options to our valued clients.
Frequently Asked Questions
What is Value Range Marketing?
Value Range Marketing, (VRM) is an innovative new marketing strategy that removes the need to set a fixed asking price for a property. Traditionally, Sellers list their homes at a fixed sale price; usually above the true market value. Because Sellers tend to ask more than they ultimately are willing to accept, buyers may not want to look at a property until the price comes closer to their price range. While buyers may be very interested in a property, they may feel that a low offers could offend the seller. So, while most traditional fixed-price plans wait for price adjustments; properties linger on the market. With Value Range Marketing, there are no price changes. The Seller simply establishes an asking price, finds a comfortable range among our 80 pre-set ranges, and agrees to respond only to offers that fall within the acceptable range. Remember, the more buyers that see your home and become emotionally involved with it, the better chance you have of selling your home quickly and at a more advantageous price.
The goal of Value Range Marketing is to entice more potential Buyers to inquire about the house, and to encourage more offers on the home by opening negotiations much sooner than with the fixed price process. Research has shown that, even if listed at true market value, on average, fixed price listings may only be seen by 40% of the potential Buyers. VRM is designed to encourage inquiries from all of the qualified Buyers.
Won't Buyers Only Make Offers At The Low End Of The Range?
No. What VRM does better than any other system is allow the market to determine the true value of a home? Buyers will make their offers based upon how much they really want the home, how many other buyers might have interest at the same time, and how much they think the home is worth based on comparable properties. Remember, the idea is to attract more Buyers and to start the negotiating process earlier. If Buyers do not go to see a property because they are put off by the fixed asking price, there is no possibility of an offer. The Buyer and Seller will most likely go through the common process of counter offers, but provided both sides have some flexibility, they should reach a price and terms that are agreeable to both parties.
Does VRM Affect The Time To Achieve A Sale?
Yes. The average time to sell PVRM listings is significantly lower on average than fixed price listings. Agents in the Berkshire Hathaway HomeServices network have experienced reductions as much as 20% of the average time for fixed price listings.
Is The Seller Saying That They Will Accept Any Offer Within The Range?
No. The seller is saying that they will judge the merits of an offer when presented, and will make some type of a counter offer by responding to the offer. Please remember that a Seller takes more than price into consideration when considering an offer. Examples would be, the settlement date, is the offer contingent on anything such as financing, inspections etc. It is very important to remember that the listing price is the price at the upper end of the range, very much like a fixed price. The difference is that from a marketing point of view, PVRM addresses in writing what Buyers are actually thinking. This is why the concept has been so successful. Remember, you are the ultimate decision maker when determining the selling price of your home.
Does VRM Only Benefit Sellers?
No. In fact, Buyers like VRM as much as Sellers do. They get an opportunity to see more houses suited to their needs, so they have a better pulse on what is available and what comparable properties are worth. VRM makes Buyers feel more comfortable about making an offer on a home. Many Buyers do not want to run the risk of insulting a Seller with an offer the Seller may feel is completely unreasonable. With VRM, for the first time, the boundaries where positive negotiations can take place are clearly defined. Buyers know where they can comfortably begin their negations without offending the seller.