Subscribe to Answers
I am correct this type of pricing started in your area, I thought it was crazy then and it still think it is. This type of pricing was used by auction houses to estimate value of where an item will go out at.
Somehow, auctioning real estate has a poor taste for people. It is reminiscent of auctioning homes, farms etc at pennies on the dollar. I think that this image exist, even on the higher end where that has happened.
If this works for you and you are benefitting from it, then my argument is pointless. Personally speaking, I would pass on buying anything from a car to a vegetable or piece of fruit, to a home if it is priced that way. A
Women of Westchester W...
West Harrison, NY
I tried using it a gazillion years ago, but most people just didn't get it. And the ranges for higher priced homes can we big and sellers hated that. And you're right that many portals can't show the range of price, so you're "screwed" if it shows only the high or the low end.
Jeff Dowler, CRS
Mitchell J Hall
In the past, it's been used in this area, but lately it's not been the custom. So many of our transactions involve bidding wars and become the battle of the escalator clauses. So the buyers are really the ones establishing the variable price ranges.
Jeff Dowler, CRS
Depends on the circustance, If a seller wants a CMA and I have not seen the property I will use VRM and I explain that once I see the home, I will give a more solid figure.
Anthony Acosta - ALLAT...
Well the sword cuts both ways here. The guy reading it is going to do a scale too. Why scales? Ask your price and wait for an answer
No. This concept does not exist on my MLS.
Never, not seen it used in my market area as of yet.
I see this discussion often, but I dont really know the best solution.
We do not have that in our market. When I do a CMA I do have a range, until I see the home, and set a price with the assistance of the Seller.
I've not seen that much in my area, Jeff. I am not a fan of it. I believe in pricing a home at market value. It gives the consumer the most realistic expectation of what a seller wants.
No. I do not see the benefits and it is not a common practice in our market.
Big attempt in Florida in the late 90's. Went over like a lead balloon!
A big no, because in 30 years not 1 seller has ever taken an offer on the low amount of that range. I just wrote about it my blog.
Not used in our MLS. Not really knowledgeable about it.
Good morning Jeff. From what I know about VRM, it would create more headaches than be a useful tool.
No. We don't see it in my area and I think the approach would not work in my market.
I don't use it and never have.
It was "the flavor of the moment" a few years back.
Eyes open mouth closed.
Jeff Dowler CRS - this is like using Zillow to arrive at list price for the home!
And I do not like the accuracy of Zestimate - so my answer is - No. Never used, either.
A recent listing had $500K-$570K, we offered lot higher than $500K - the seller did not accept it. The home is still on market after 6 weeks - whereas 4 other homes are almost sold there.
I believe, it DOES NOT work!
Personally I despise our policy to do this rather frequently in San Diego, but do it when sellers demand.
I do not as in our market it is very confusing to buyers and even other agents.
I have and can't say why or why not Jeff. This is another technique at a CMA.
No I don't use VRM. Doesn't make sense to me. Maybe it's because no one I know uses this.
No - I don't like it
Hi, Jeff...this is a new concept for me and it's not being used in my area. I would love to know more about how it's being used. Shoot me an information packed email if you have time.
$/sf gla should be used +lot size. That works out very well....
As you know Jeff, we saw a lot of it in California with Prudential California Realty. Now I am in Florida and I haven't seen one listing using it here.
That is something that AVM's often do. What I like is the RPR RVM, that puts the REALTOR® in the consideration.
We have in the past hoping to generate a buyer frenzy. Didn't happen, so that ploy has disappeared from our marketing strategy.
Jeff VRM has never caught on in my neck of the woods. During the boom years a few agents used it but it turned a lot of agents off. Perception is everything.
Jeff Dowler CRS It was a passing fad here that didn't catch on.
Boy, the market is changing so fast that I have to give a range now.
I always give the seller a price range in my listing presentation and explain different pricing strategies depending on their needs that may ultimately accomplish the same goal but in different time frames and with more or less buyers to choose from.
From the price range together we come up with the asking price they're comfortable with. I think to actually list it at a range price is silly because an asking price is just that an asking price. A buyer can offer higher or lower. The price the seller gets is a function of the marketing they choose.
No I always want to get the most for my client and using vrm buyers know that the price is not solid and they will throw a low bid at my client