Foothills Insider News, January 8th, 2008

At today’s Long Realty meeting we brainstormed methods of increasing the visibility of homes for sale on MLS.

Our office manager made a case for the merits of range pricing.

Range pricing means sellers specify a range they are willing to except verses a static price. For example, instead of pricing a home at $800,000, a range price might be $780,000-$820,000

Even though range pricing is unpopular with both agents and Sellers, preliminary statistics suggest an increase in showings and a higher rate of open escrows.

The reason range pricing is unpopular is because in a seller’s market, the low price usually indicates the lowest amount sellers will consider, and the high price indicates "modest" expectations that include a somewhat reasonable market premium. Of course, a high price boundary doesn’t preclude a seller from taking a higher offer. On the other hand, in a buyer’s market, a high price is wishful thinking. Most sellers today would be happy to receive an offer considered low six months ago. In this market though, nothing will stop buyers from "going under" – offering less than the low boundary.

I am going to try this strategy on one of my listings, just to see for myself if it really does anything.

Here is the list of tour properties:

MLS #:20745725: 5338 N Paseo Sonoyta, Tucson, AZ 85750. Sunrise Presidio. $278,900. (Relisted 1/13/08. MLS: 20802341. $274,900).

MLS #:20800971: 6261 E Placita Del Nido, Tucson, AZ 85750. Alta Vista. $879,900.

MLS #:20745665: 4349 N Camino De Carrillo, Tucson, AZ 85750. Fairfield Sunrise East. $569,900. (1/10/08 – new price $549,000. 1/14/08 – Withdrawn).

MLS #:20800984: 6331 N Whaleback Pl, Tucson, AZ 85750. Whaleback Ridge Estates at Ventana Canyon. $278,900.

MLS #:2102203: 6570 N Placita De Tia Ro, Tucson, AZ 85750. Alta Vista. $1,195,000.

MLS #:20800983: 6551 N Longfellow Dr, Tucson, AZ 85718. Coronado Foothills Estates. $995,000. (Pending 1/15/08).

MLS #:20747697: 3333 E Cobblestone Pl, Tucson, AZ 85718. Cobblestone.  $2,950,000. (Relisted 1/17/08. MLS: 20803150).

MLS #:: 20801465: 7601 N Calle Sin Envidia, Unit 39, Tucson, AZ 85718. Villas at Rancho Sin Vacas. $279,500.