Range Price…what’s the real price?
I have several properties that are range priced.? Even though I thought I had explained it well on the listing I immediately received some phone calls from Realtors wanting to know what I was doing.
So this post is an attempt to explain it better.?
We all know that in a market like ours where we have more rural properties instead of huge developments full of identical homes it is impossible to price a property at it?s exact value.? When we do the comparables we really can?t tell if the location compared to the similar property 6 miles away increases the value by $5,000 or by $6,000.? We honestly can?t tell if the neighbors junky yard decreases the value by $3,000 or by $6,000.?
In fact, most of us don?t even factor those particular issues into our pricing even though we KNOW it does make a difference.? It?s just not possible to know exactly how many dollars up or down these more esoteric differences make in the value.?
By the time you compare 3?4 houses to the one you are trying to price it is easy to have differences of $10,000?$15,000 that aren?t even factored into our price.? We can easily make adjustments for square footage, lot size, qarage size, age, and more but we can?t tell exactly how much difference the noisy gravel pit or the smelly dog yard will make in the price.?