Home Selling in 11552>Question Details

Jenny, Both Buyer and Seller in West Hempstead, NY

I am going to put my house on the market. My broker wants me to use a price range (pvrm). Is this really the?

Asked by Jenny, West Hempstead, NY Mon Oct 13, 2008

way to go?

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J R’s answer
What is the first question buyers ask? What should I offer? PVRM tells them what they should offer. The high price of the range is "the price". There is no "bait and switch". In our MLS, which allows PVRM, the price clearly comes up as the higher price in the list of homes, although it will come up if a search is made anywhere within the range. When you click on it, the page has the range as the price. The verbiage should clearly state "seller will entertain offers between x and y." The seller will no more "not accept anything" other than the high price, any more than a seller will accept ONLY their list price. PVRM encourages offers. Buyers do not find it confusing when it is explained to them by an agent who is not confused by it. It frequently results in multiple offers. In my experience with multiple offers, the subsequent offers generally come in higher, as buyers assume the previous offer fell somewhere within the range.

PVRM stands for Prudential Value Range Marketing. If you google the term you will find many many pages explaining it more fully than I can in this forum.
2 votes Thank Flag Link Mon Oct 13, 2008
I find that PVRM is more of a "bait and switch" game... will the seller accept the lowest price in the stated range, or is he really just wanting to list the property so it shows up in lower-priced searches, and won't accept anything lower than the high end of the stated range?

Buyers find this confusing, and realtors find it frustrating. However, ultimately it depends on what is considered to be standard for your area.
1 vote Thank Flag Link Mon Oct 13, 2008
I find in a declining market PVRM works well. It also works well in an area where there are a lot of similar houses. I have used is sucessfully many times. It very frequently results in multiple offers.

I have also found that I get the most resistance from other agents who do not understand it totally. When I explain it to buyers, they don't have problem with it.
1 vote Thank Flag Link Mon Oct 13, 2008
JR, it might be good strategy in your area as I stated. In my area, the agents that use it are not effective. The reason the house for $1.9 sold was not because of the PVRM, it was because the seller accepted the right price. In my opinion, if a house is priced correctly from the beginning it will sell for the top price with interest from all buyers. There is no need for the PVRM, just price it right and forget the gimmicks.
0 votes Thank Flag Link Sun Oct 19, 2008
Tyler: I sold one of theirs recently that was value priced from $2.1 to $2.5, sold for $1.9. Had nothing to do with the value range.

JR: It is very possible a house listed with PVRM will sell for LESS than the lower number, Tyler. The whole idea is to GET OFFERS that you would NOT otherwise get. Any offer is an opportunity to negotiate!

A little story, though. I once had an accepted offer on a house. The accepted offer was BELOW the low number. Two other buyers who had seen the house earlier heard there was an accepted on that house, and came in close to the asking price, because they assumed the accepted offer was higher than it actually was. :)

Tyler: Typically the high end of the value is way overpriced.Typically the high end of the value is way overpriced.

JR: If you use PVRM correctly, the high end of the value is the PRICE. Not the low end or somewhere in the middle. You can overprice using PVRM also, if you make the low end the price.

Any other objections to PVRM?
0 votes Thank Flag Link Sun Oct 19, 2008
Guess it depends on your area. If JR is in your area, you might want to consider it.

The Prudential agents who use it in my area are unsuccessful with the sales more times than not. I sold one of theirs recently that was value priced from $2.1 to $2.5, sold for $1.9. Had nothing to do with the value range. The way I look at value range, the lower value is the sellers asking price, and the sale price is less that that. At least that's what I see in my area. I advise my clients to avoid the that strategy, and price it right in the beginning. That is the best way to sell a home in my opinion. Now, if you put the right price on the property to begin with, it won't matter if it is value priced or not. Typically the high end of the value is way overpriced.
0 votes Thank Flag Link Sat Oct 18, 2008
BTW, good job of explaining J R. A helpful from me. I checked over your statistics the other day. I mean these. :)
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Pretty darn impressive.
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Thanks, Rockin! Gee, at first I thought you meant my OTHER stats: 36-24-36. :) ::blushing::
0 votes Thank Flag Link Sat Oct 18, 2008
It's human nature that someone is going to offer the lowest amount possible
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That is correct, the will probably offer the lowest offer possible. Any offer is an opportunity to negotiate. In this market there are frequently NO offers. However, if another buyer comes along THEY will not offer the low end, because they will assume the previous offer started there. This is how you can get a bidding war even in this market. I have had multiple offers, even recently. As I said, it's harder trying to get the agents to accept PVRM than the public. They seem to understand when it's explained correctly.
0 votes Thank Flag Link Sat Oct 18, 2008
Determining the value of a home is a complex undertaking and should not be taken lightly. It is not as simple as checking listings and/or comparable sales. My strong suggestion is to locate a certified residential appraiser and discuss your situation with him/her. It may cost you an appraisal fee, but all things being equal the cost is negligible. Also, you will not have to worry about your deal falling through when the bank’s appraiser, appraises your house. If you have any questions feel free to contact me, I can be reach at http://www.SummitAppraisers.com. Good Luck, Hal Goldstein
0 votes Thank Flag Link Sat Oct 18, 2008
We totally disagree...the ranges make no "Sense". It's human nature that someone is going to offer the lowest amount possible and the range just confuses a buyer. If you really want to sell, then price it at the price you would consider. When you suggest a range, the highest amount automatically shows on the MLS, so many times the lowest number goes un-noticed.
0 votes Thank Flag Link Wed Oct 15, 2008
JR,
Would you please explain PVRM to us, it sounds quite useful! (Especially the multiple offers part!)
I'm familiar with many valuations models but not this one though I may know it by another name..
Thanks, Jolie
Web Reference: http://joliemuss.com
0 votes Thank Flag Link Mon Oct 13, 2008
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