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VRM

Hat tip to the reader who sent in this good explanation about variable-range, or value range pricing:

http://www.zillow.com/wikipages/Variable-or-Value-Range-Pricing-for-Homes/

The author takes a neutral stance, and notes that it hasn’t caught on much outside of San Diego (I haven’t heard of it being used anywhere except here).

I also like the point that listing agents should have sellers prepped to entertain offers at the bottom of the range:

Of course, we always make sure our sellers would actually consider an offer at the lower end of the range before advertising it! To do otherwise would constitute misleading “bait and switch” advertising.

In the 10-15 years of range pricing, I haven’t found a buyer yet who likes it.

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