Supporters say this strategy exposes the property to more potential buyers given the extended price range, allows sellers (who have otherwise been adverse to lowering the list price of their homes) to achieve a more realistic view of what the current market is bringing, and also is productive for initiating negotiations between sellers and buyers.

There has been some confusion among agents as to how range marketing works, but put simply, the listing agent notes in the remarks section of the listing contract that the seller would, for example, consider offers between the range of $144,900 and $159,900.  The seller still controls the sales price and is free to accept or reject any offer submitted.  If an offer is submitted at the lower range and the buyer was not asking for numerous concessions, such as closing costs or repairs, the seller may net as much from a low offer as he would if he accepted a higher bid but also agreed to pay settlement expenses and provide other incentives for the buyer’s side.  Thus, it can also be argued that an offer submitted at the low range may actually bring more dollars to the seller at the closing table.

I recomend caution in proceeding and that careful prepartion be done for the sellers in preparing a ‘net sheet’  for both price extremes and/or having a real estate attorney prepare a mock HUD outlining potential settelment outcomes.