Re: 1/29 Marketplace rpt on Portland bubble
Listened to it, and one thing caught my ear. She recommended sellers use "Value Range Marketing
So, what is Value Range Marketing? Instead of setting a price, the seller sets a price range. Say, they want $400k for a house, they might set the range to be $350k to $410k. Looks kind of weird doesn't it? Then the buyer is supposed to see that and say, great, I like the house and I'll offer $350k (obviously). Then the seller looks over the offer and says, "I don't really want to sell for $350k, I just agreed to look over the offer. In fact, I can't sell for anything less than $395k" At which point, the seller either is so exasperated he/she walks off, or is so entranced by the sellers beautiful and attractively priced home that he walks away.
At least, that's what it looks like to me. My question is, how is this any different than a bait and switch. If I went to Best Buy and saw a TV for $900-$1100, I would try to buy it for $900. If they then refused my offer of $900, I would not only leave without purchasing the TV, but I'd stop going to Best Buy all together.
How can Realtors (R, tm, c), a profession now more universally despised than lawyers (and maybe bankers), play a game like this without expecting it to blow up in their faces? They are literally trying to trick people into loving a hosue so they can raise the price!!!!!!