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.
Buyers find this confusing, and realtors find it frustrating. However, ultimately it depends on what is considered to be standard for your area.
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.
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?
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.
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Pretty darn impressive.
Thanks, Rockin! Gee, at first I thought you meant my OTHER stats: 36-24-36. :) ::blushing::
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.
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..