It never made a lot of sense to me either, but to each their own. I had one seller insist on VRP, but that is the only time I've had a listing like that and the range was about 20 grand. It has to do with the theory of trying to expose the property to more buyers.
The only problem with that theory is how the MLS actually works. Let's say you Value Range a Property from $699,000 - $775,000 and we assume the seller wants $750,000.
Buyer A is searching for homes up to $700,000. Yes, the property shows up on their search sheet, but when the buyer looks at the list, the home's price shows as $775,000 among all the other up to $700,000 homes because the MLS always advertises the high end of the range . Everytime a search site (like Realtor.com) pulls info from the MLS, it will show the high side first if it even shows the low end at all. (How does it attract more buyers if it doesn't show or shows for someone who isn't looking to pay that price ???
Now the seller has attracted a buyer that has no intention of buying anything over $700,000 when the seller's goal is $750,000. (If the buyer is willing to pay $750,000, then that is the price they will search.)
On the flip side, you have Buyer B searching for homes up to $800,000. $775,000 pops up and then Buyer B clicks on the detail sheet and now sees the "Value" Range price below $700,000. No buyer in today's market is going to pay more than list... And Guess what? The low end of the Value Range is the list price...
I think Value Range Pricing has a purpose, and in my opinion it is to ease the seller into a price reduction down the road. A better strategy is to price it properly in the beginning with a company that can offer you REAL Marketing & Advertising. Time is money in this market.
(If anyone can show me that it does generate more money for a seller, I'd be willing to revisit and or retract my opinion. As it stands today, I've never seen any proof.)