What is Prudential Value Range Marketing?
PVRM is simply a marketing tool. It is not intended to replace fixed price marketing, but is designed to offer Buyers and Sellers a unique alternative to fixed price marketing. The goal of Value Range Marketing is to invite more potential Buyers to inquire about a house, and encourage more offers by opening negotiations. Without offers we can’t negotiate.
Is The Seller Saying That They Will Accept Any Offer Within The Range?
No. The Seller is saying they will consider the merits of the offer, and make a counter offer. There are many other factors to be considered in an offer other than price, such as downpayment and time of closing. And most prospective Buyers have a “wish price” in mind when they begin searching for a home. Many realize that the house they have in mind costs more than their wish price. Prudential Value Range Marketing is an invitation to Buyers to come and view a house that they might miss because it’s priced higher than they expected to spend.
Won't Buyers Only Make Offers At The Low End Of The Range?
They might. But most astute Buyers are keenly aware of the approximate market value of a property prior to submitting an offer. They understand that their initial offer is the beginning of the negotiation process. Remember, the idea is to attract more Buyers, and start the negotiating process—without an offer, there are no negotiations! The Buyer and Seller will go through the usual process of counter offers, but provided both sides have some flexibility they should reach a price and terms that are agreeable to both parties.
Doesn’t using a range make it look like we don’t know what the house is worth?
No one can tell you for sure the exact price a home will sell for. However, a good agent will have done their homework, and researched the area to determine the likely approximate selling price.
Aren’t we deceiving the Buyer by trying to get them to fall in love with a house that costs more money than they want to spend?
A Buyer may not disclose the maximum amount of money they want to spend. They may be able to afford more than they let us know, or they may have reserves for a higher down payment. All ranges end in "876" at the high end which alerts brokers searching the MLS that this is a PVRM listing. (“876” = “VRM” on the telephone).
Prudential Value Range Marketing creates more activity. There are many success stories about properties marketed at fixed price where activity was stalled or stopped and when converted to Prudential Value Range Marketing the property sold…. Quickly.
This is just a Prudential thing.
PVRM is an exclusive marketing program for the use of Prudential Real Estate Network members. However, things are changing. Successful agents know that in order to succeed, they have to be able to meet the needs of their clients. PVRM is another tool to do that. When a program is this successful, copycat programs will follow. Range marketing is no exception. However, Prudential Value Range Marketing will always be known as the pioneer and leader in the field.
Is PVRM Used Elsewhere?
Yes. The concept of PVRM was first developed in Australia, and is now in common use there. The program is widely used throughout North America by Prudential Real Estate Affiliates.