can someone explain...

Perp said:
Though how the real estate industry determines whether it gets "optimal" results would be interesting to find out.
Click to expand...

Sounds like it's perfect for REA's as it lets the price range condition the vendor.

Vendor: What will I get for my property
REA: Between $230 and $290k
Vendor: (hearing $290k) Put it on the market
It sells for $250k which is within expectations.

Standard method would be to advertise at $275k which might appeal to the vendor but not the buyer. Inexperienced buyers wanting to spend $250k may not attend as they are used to paying for things at the price advertised rather than negotiating.

I believe there is a greater possibility that someone will pay the full asking price if there is a single price as opposed to properties using the price range method as most offers will be toward the lower end of the range as buyers try to get a bargain.

For this reason Perp's comments regarding whether the optimal price has been achieved are probably valid.

Regards

Andrew
 
Why do you all hate it that much ?

Enough times numerous investors have said the asking price is pretty irrelevant and that smart investors would do their own research to determine a price nd then present that to the seller.. if you're going to negotiate anyway, what's the difference ? you will never know clearly what they will want or might take for the property from just the aksing price, even if the price was a single figure or a range of figures anyway, so why experienced investors who dig deeper and negotiate anyway get so annoyed about that ?
 
because i don't want to talk to the real estate agent just find out that the vendors are unrealistic and the price is way to high.

i just want to know if we (vendor and i) are anywhere near the same ball park - not necessarily on it.
 
I don't mind ranges- at least they're not as deceptive as Offers Over or Price Guide "From $x" which many prominent Sydney agents currently use in their sales tactics.
 
thanks for all the replies.

It's so frustrating seeing these price ranges. Found another ripper house. Sent REA email for inspection. Rang me today, that house sold after two days on the market!!! WTF!!! The price range was 420-450, it sold for 470,000.

Anyway, we will keep looking. I want a new house...NOW!!!!!! :D:eek:

Cheers

Lisa
 
Lisa1965 said:
It's so frustrating seeing these price ranges. Found another ripper house. Sent REA email for inspection. Rang me today, that house sold after two days on the market!!! WTF!!! The price range was 420-450, it sold for 470,000.
Click to expand...

It's not just price ranges, but also set prices where that can and does happen. I recently saw a house advertised for just the one figure $399K, but sold for $430K. In a hot market, anything can happen, so you need to act fast! In a cooling market, then the ranges might mean a bit more, but in a hot market, it's hard to be sure what someone will be willing to pay for something.

By the way if you're serious about these properties, I wouldn't be bothering with e-mails. Phone the agent, talk to them direct and arrange something right away.
 
A friend of mine placed a bid in an auction for a price that was within the agent's quoted range. He was the highest bidder and the property ended up getting passed in at this bid!

What is the point of quoting a range when they aren't even prepared to sell for a price within that range?
 
It is frustrating I know :cool: but an agents quoted range and the reserve price set by the vendor can be 2 different things.

Bear in mind that the vendor often only sets their reserve 24 hours or less before the auction day, whereas the agent has had a 4 - 6 week campaign to quote his range. Just because the agent holds a view does not mean that the vendor shares his opinion.
 
You would think that the agent would consult with the vendors before advertising a range though wouldn;t you ?

Why should the agent's marketed price range be so different from what the vendors may want ??
 
jaycee said:
You would think that the agent would consult with the vendors before advertising a range though wouldn;t you ?

Why should the agent's marketed price range be so different from what the vendors may want ??
Click to expand...

You make a valid point, and I would be the last person to stand up for some of the tactics engaged in by selling agents as I am on the receiving end of them on an almost daily basis :p.

Bear this in mind. At the listing meeting, where the agent is signing up the vendor, he is often overquoting to the vendor to get the listing and then relying on the buyer feed-back over the next 4-6 weeks to help 'condition' his vendor back to the reality of the marketplace.

The agent may be more realistic on price than the vendor. Of course then there are agents that underquote to potential buyers to get more people at the auction to impress the vendor and that is an issue too. :(
 
OK I might just turn this into a whinge thread.:eek:

But is that friggen realestate.com.au the most unreliable site on the net?:mad:

It freezes, it shows half the pictures, the other half won't load...ahhhh

give me domain anyday.:D
 
Oops, I should research the forum a little bit more before going off half cocked. hehehe. Might go find them now and join in. lol
:D

Cheers

Lisa
 
Best to just list a minimum price.

Range is confusing: obviously the first offer will just be above the bottom of the range. Also, does the seller mean that they don't want anything abovethe top of the range?
 
I think everyone is just beating this up too any times...

Every time I have bought a secondhand tiem, I have offered less than the advertised price.

Even if the house say $449k, you know you will negotiate and come up with a price that probably won't be this price.

Same if the advertised price range is $440 - $460k, you would do the same, negotiate adn come up with a price

If you are not cluey enough to be able to work out the right value adn therefore the right price to offer, you wouldn't normally offer anything cause you don know what to offer - this would be the ame regardles sof what price was advertised !

If you know what you thikn it's worth and a prepared to pay, you could offer that amount regardless of what was advertised

IF you think that you can judge exaclty what a vendor wants form the advertised price, you are oging to probably be disspaointed regardless of the advertised single price / price range.

To me it looks like it's all the same and the main difference I see for myslef when I look at an area or something that I dont have a clue about the price range of, I find I dontknow what I thikn the house shoudl be worth - but this is my fault/problem with the product for sale not the vendor/agent's advert fault - if they advertised a place for $1m but how would that help me if I didnt know the area and the fact that the house was worth $500k ?

I think we need to take self respoinsibility and find out about what we ar buying rather than expect SALES people to provide us with the answer
 
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