Houses on a price range??

marjrie_2

We are searching for a house move, one agent in the area we are looking at seems to price at a offers between range.
I've not seen this before, is it a new thing, and how would you offer on some thing priced in this way???
Thanks in advance for any help offered

jamei305

I've seen it once or twice, perhaps the agent thinks it will make people reckon they've got a bargain if they get it for the lower price.

I wouldn't dream of offering more than the lowest figure to start with, as they are stating that's the lowest they are willing to accept.

AlexMac

I think this is a daft pricing policy; everyone starts with an offer below the asking price!

Ward & partners (an EA chain in Kent) used to do this; we bought from them in 2007; a flat advertised at £160-£175k, so a silly wide range. We started by offering £150k and eventually got it for £154k or so...

Later, I asked why they bothered with this tactic, and their reply was that they assumed people would offer in the middle... Well I suppose some mugs might?

needless to say, we didn't use them to sell a few years later!

Interstingly, I just clicked on their website, and they appear to have gone back to simple, one-number asking prices... like every other EA

So whatever it says on the tin, I'd always start lower

marjrie_2

What is strange to me is that this agent seems to get most houses on their books.
I really don't like this type of pricing, why oh why can't it be simple

Talc1234

it is a way that the agent allows the house to appear on more searches. Foe example if the vendor was looking for £260, a price of £245-275 K will make it available to buyers who were looking for houses below £250K.

The assumption is that the medium price is the asking price although some sellers are not accepting offers lower than the upper price.

marjrie_2

Talc1234 wrote: »

it is a way that the agent allows the house to appear on more searches. Foe example if the vendor was looking for £260, a price of £245-275 K will make it available to buyers who were looking for houses below £250K.

The assumption is that the medium price is the asking price although some sellers are not accepting offers lower than the upper price.

It still confuses me

ethank

They want to real you in so the Estate Agent can talk up the price. I hate this method of selling!

Davesnave

I see it sometimes on one-off properties where no one, including the agent, seems very sure what someone might pay for the chance to own such a residence.

But for ordinary properties of a particular type, agents and buyers ought to know pretty much what they're worth, as sold data is available to all.

If it confuses you, perhaps you need to do more research. Your guide is what other people have been successfully offering, bearing in mind recent movements in the market (as data is always over 3 months old) and allowing a couple of % for negotiation up to that figure.

If the seller won't bite, then either walk away, or decide how much more that property is worth to you.

robatwork

It's pointless.

On any large ticket item, I always make an offer before buying. For example a car which is priced, precisely, at £18,714 I may offer £16,000 and then negotiate. Same with a house.

A dealer wouldn't price a car at between £18,000 and £20,000 for a particular car, and EAs who do this are daft and playing faux psychologist with their seller.

Just treat the lowest price as the price and offer accordingly.

Mickygg

I agree with Jamie. I think it's a way of getting the lowest price range by convincing you you've got a deal. The EAs will then use this by saying the sellers wanted nearer the top of the range blah blah blah.

Also it can come in to play in a bidding war.

The asking price is the lowest price range.

w00519772

When I was buying I looked into this as there were guide prices, price ranges etc. In the end a house is worth what someone will pay. Price ranges, guide prices etc are just marketing tools to encourage you to pay a certain amount.

Do your research. Find out what other houses have sold for recently and make an offer.

Every seller is different. Some want a quick sale and some will hold out for the best price. If the seller is waiting for the best price then they may only accept at the higher end of the range.