Can someone please explain why as house is put up for sale with a price range?

For the life of me I can't truly understand the point of this.
There is this house on the market and its listed at 599-639K....why do realtors do this?

There is one realtor/realty team in our area that does this with all their listings. Why? what is the benefit or purpose of this?

Thanks......

Can someone please explain why as house is put up for sale with a price range?

To attract more people. It will show up in more searches

Can someone please explain why as house is put up for sale with a price range?

Our agent wanted to do this when we sold and we said no way. I don't get it either. Unless there's a bidding war, I don't see how this could help the seller get the highest price. Who's going to make an offer higher than the bottom end of the range? We listed the old fashioned way and ended up getting a price we were reasonably happy with. I don't see how listing a range would have been better, but interested to see how others respond.

Re: Can someone please explain why as house is put up for sale with a price range?

Is it a new house?

I feel as though I've seen that when new constructions go up, and MSLI has several of the same house listed.

Re: Can someone please explain why as house is put up for sale with a price range?

I personally do not do this, but in my experience, it's one of two things:

1) The seller and the listing agent disagree on price. If the seller wants to overprice it, sometimes there can be a compromise of doing a range, and then at least, as someone else said, the house will show up in searches in the lower range. So if you list at $639K-$599K, it will show up in searches of people who only look online for homes up to $600K.

2) The other reason that some people do it is to put parameters on the offers they will consider. In other words, they are saying that the seller will entertain offers within x and y range, so lower offers below the bottom of the range are discouraged. In reality, people are going to offer what they want to offer, regardless of a suggested range. The market conditions will dictate the selling price, not someone's "range."

I wouldn't list homes that way because it's confusing to buyers and can turn people off. And also, unless it's the deal of the century, who is going to offer on the high end of the range initially?

Re: Can someone please explain why as house is put up for sale with a price range?

When house hunting we saw a house like this. The low end was just above our budget and the high end was way too high. I didn't understand what they were getting at so we didn't even bother looking at it. I didn't want to fall in love with it and have them tell us "No, we really want WAY more than what you're able to offer, but thanks for looking".

Re: Can someone please explain why as house is put up for sale with a price range?

Thanks everyone!

So some background. the house was built in the 80s, has been on the market since April. My gut is that the price range has to do with unrealistic expectations.

The house is nice but outdated, not bad as in you have to remodel before moving in, but enough that you know when buying you are going to do new bathrooms, new carpet, new roof, etc within the next 3-5 years. Not including all the little things like it has all the old wood doors and just basic builder grade moulding etc.

Personally I think the low end of the range is over priced considering....

We really like the layout of hte house and the location is amazing for us. But we are in the midst of finishing a reno before deciding for sure if we want to put our house on the market in the new year. So we will see what happens.