Jeff Dowler, CRS, The Southern California Relocation Dude (eXp Realty of California, Inc.)

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Rainmaker
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Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Jeff,

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

Mar 19, 2016 05:19 AM
Rainmaker
3,569,767
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

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.

Mar 19, 2016 04:26 AM
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

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.

Mar 19, 2016 05:12 AM
Rainmaker
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Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

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. 

Mar 19, 2016 10:43 PM
Rainmaker
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Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

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

Mar 19, 2016 05:16 AM
Rainmaker
1,157,329
FN LN
Toronto, ON

No.  This concept does not exist on my MLS.

Mar 19, 2016 05:12 AM
Rainmaker
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Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Never, not seen it used in my market area as of yet.

Mar 19, 2016 04:27 AM
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Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

I see this discussion often, but I dont really know the best solution.

Jun 16, 2019 11:10 PM
Rainmaker
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Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

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.

Mar 21, 2016 12:29 AM
Rainmaker
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

no

Mar 21, 2016 12:02 AM
Rainmaker
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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

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.

Mar 20, 2016 03:16 AM
Rainmaker
5,982,938
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

No. I do not see the benefits and it is not a common practice in our market.

Mar 20, 2016 12:54 AM
Rainmaker
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Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Big attempt in Florida in the late 90's. Went over like a lead balloon!

Mar 20, 2016 12:20 AM
Rainmaker
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Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

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.

Mar 20, 2016 12:03 AM
Rainmaker
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Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

no

Mar 19, 2016 10:53 PM
Rainmaker
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Peter Mohylsky. Beach Expert
PrimeSouth Properties - Santa Rosa Beach, FL
THE BEACH IS OPEN

Not used in our MLS.  Not really knowledgeable about it. 

Mar 19, 2016 10:11 PM
Rainmaker
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Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Jeff. From what I know about VRM, it would create more headaches than be a useful tool.

Mar 19, 2016 08:15 PM
Rainmaker
634,116
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

No. We don't see it in my area and I think the approach would not work in my market.

Mar 19, 2016 06:28 PM
Rainmaker
3,734,863
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

I don't use it and never have.   

It was "the flavor of the moment" a few years back.  

 

Mar 19, 2016 06:03 PM
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TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

 Eyes open mouth closed.

Mar 19, 2016 05:46 PM
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

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!

Mar 19, 2016 04:17 PM
Rainmaker
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LuxurySoCalRealty Compass San Diego
Compass - La Jolla, CA
San Diego Partner - The Private Client Network

Personally I despise our policy to do this rather frequently in San Diego, but do it when sellers demand.

Mar 19, 2016 02:22 PM
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I do not as in our market it is very confusing to buyers and even other agents.

Mar 19, 2016 01:43 PM
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Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

I have and can't say why or why not Jeff. This is another technique at a CMA.

Mar 19, 2016 01:40 PM
Rainer
308,078
Melissa Jackson
Century 21 Alliance Properties - Azle, TX
Helping You Make The Right Move

No I don't use VRM.  Doesn't make sense to me.  Maybe it's because no one I know uses this.

Mar 19, 2016 12:17 PM
Rainmaker
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Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

No - I don't like it

Mar 19, 2016 12:03 PM
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Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

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. 

Mar 19, 2016 11:33 AM
Rainmaker
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Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

$/sf gla should be used +lot size. That works out very well....

Mar 19, 2016 10:39 AM
Rainmaker
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Susan Laxson CRS
Palm Properties - La Quinta, CA
Local Knowledge & Global Network

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.

Mar 19, 2016 10:38 AM
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

That is something that AVM's often do. What I like is the RPR RVM, that puts the REALTOR® in the consideration.

Mar 19, 2016 09:24 AM
Rainmaker
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Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

We have in the past hoping to generate a buyer frenzy. Didn't happen, so that ploy has disappeared from our marketing strategy.

Mar 19, 2016 08:47 AM
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Anna Banana Kruchten CRS, CRS, Broker, Instructor
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

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.

Mar 19, 2016 08:44 AM
Rainmaker
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Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Jeff Dowler CRS It was a passing fad here that didn't catch on.

Mar 19, 2016 07:32 AM
Rainmaker
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Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Boy, the market is changing so fast that I have to give a range now.

Mar 19, 2016 07:28 AM
Rainmaker
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Mitchell J Hall
Compass - Manhattan, NY
Lic Associate RE Broker - Manhattan & Brooklyn

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.

Mar 19, 2016 06:24 AM
Rainer
32,757
Leanne Carpenter
RE/MAX Realty Professionals - Mobile, AL

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

Mar 19, 2016 05:28 AM