What is PVRM?
What is PVRM? PVRM is simply a marketing tool. It is not intended to replace fixed price marketing, but offers buyers and sellers a unique alternative to the traditional fixed price marketing method.
How Does PVRM work? Homes are marketed in one of 80 present ranges. These ranges have evolved from data gathered from the National Association of Realtors, The Canadian Real Estate Association and by gathering information from many North American markets where Prudential Real Estate has affiliates using PVRM.
Properties are placed in MLS at the low end of the range. The remarks in MLS state: “The seller will consider offers between $119,000 and $139,876 (or whatever the appropriate range may be). This, of course does not mean the seller must accept any offer in the range, but rather they will consider or review offers. However unlike offers on fixed price listings, they agree not to be offended by any offer which is made within the range (including the LOW end). All 80 ranges end in "876" at the high end which alerts brokers searching in MLS that this is a PVRM listing. (“876” = “VRM” on the telephone). PVRM creates more activity. There are many success stories about properties marketed at fixed price where activity was stalled or stopped and when converted to PVRM the property sold…. Quickly.
Advantages of PVRM
For Sellers:
Eliminates risk of under/overpricing
Eliminates the need for price reductions
Attracts more buyers
Invites more offers - sooner
Dramatically decreases days on market
Optimizes final sales price allowing true market to determine maximum price
For Buyers:
Expands pool of homes to view
Eliminates fear of insulting seller with low offer
PVRM properties are easily identified
Negotiation process is more comfortable
Properties marketed using PVRM may sell up to five times faster and, in some cases, for more money than the seller expected. PVRM introduces properties to more buyers than a traditional fixed-price listing, and creates a comfortable atmosphere for negotiations to begin much sooner in the sales process. Prudential Real Estate has taken the lead in the real estate industry with this marketing innovation. The current chart of Prudential Property Marketing Value Ranges is below:
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PVRM# |
Low |
High |
|
PVRM# |
Low |
High |
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1 |
$17,900 |
$21,876 |
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41 |
$429,000 |
$488,876 |
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2 |
$19,900 |
$23,876 |
|
42 |
$459,000 |
$528,876 |
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3 |
$21,900 |
$25,876 |
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43 |
$489,000 |
$568,876 |
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4 |
$23,900 |
$28,876 |
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44 |
$519,000 |
$598,876 |
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5 |
$25,900 |
$31,876 |
|
45 |
$559,000 |
$648,876 |
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6 |
$28,900 |
$34,876 |
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46 |
$599,000 |
$698,876 |
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7 |
$31,900 |
$37,876 |
|
47 |
$649,000 |
$748,876 |
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8 |
$34,900 |
$41,876 |
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48 |
$699,000 |
$798,876 |
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9 |
$37,900 |
$45,876 |
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49 |
$739,000 |
$848,876 |
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10 |
$41,900 |
$49,876 |
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50 |
$789,000 |
$898,876 |
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11 |
$45,900 |
$54,876 |
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51 |
$869,000 |
$998,876 |
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12 |
$49,900 |
$59,876 |
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52 |
$949,000 |
$1,094,876 |
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13 |
$54,900 |
$65,876 |
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53 |
$999,000 |
$1,194,876 |
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14 |
$59,900 |
$71,876 |
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54 |
$1,095,000 |
$1,294,876 |
|
15 |
$65,900 |
$79,876 |
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55 |
$1,195,000 |
$1,394,876 |
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16 |
$72,900 |
$89,876 |
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56 |
$1,295,000 |
$1,494,876 |
|
17 |
$79,900 |
$99,876 |
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57 |
$1,395,000 |
$1,644,876 |
|
18 |
$89,900 |
$109,876 |
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58 |
$1,545,000 |
$1,794,876 |
|
19 |
$99,900 |
$119,876 |
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59 |
$1,695,000 |
$1,944,876 |
|
20 |
$109,900 |
$129,876 |
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60 |
$1,795,000 |
$2,094,876 |
|
21 |
$119,900 |
$139,876 |
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61 |
$1,995,000 |
$2,294,876 |
|
22 |
$129,900 |
$149,876 |
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62 |
$2,145,000 |
$2,494,876 |
|
23 |
$139,900 |
$159,876 |
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63 |
$2,345,000 |
$2,694,876 |
|
24 |
$149,900 |
$169,876 |
|
64 |
$2,495,000 |
$2,894,876 |
|
25 |
$159,900 |
$179,876 |
|
65 |
$2,695,000 |
$3,194,876 |
|
26 |
$169,900 |
$194,876 |
|
66 |
$2,995,000 |
$3,494,876 |
|
27 |
$179,900 |
$209,876 |
|
67 |
$3,295,000 |
$3,794,876 |
|
28 |
$194,900 |
$224,876 |
|
68 |
$3,595,000 |
$4,194,876 |
|
29 |
$209,900 |
$239,876 |
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69 |
$3,995,000 |
$4,594,876 |
|
30 |
$224,900 |
$254,876 |
|
70 |
$4,395,000 |
$4,994,876 |
|
31 |
$234,900 |
$269,876 |
|
71 |
$4,795,000 |
$5,494,876 |
|
32 |
$244,900 |
$284,876 |
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72 |
$5,295,000 |
$5,994,876 |
|
33 |
$259,900 |
$299,876 |
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73 |
$5,795,000 |
$6,594,876 |
|
34 |
$279,900 |
$318,876 |
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74 |
$6,295,000 |
$7,194,876 |
|
35 |
$299,000 |
$338,876 |
|
75 |
$6,795,000 |
$7,794,876 |
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36 |
$309,000 |
$358,876 |
|
76 |
$7,395,000 |
$8,494,876 |
|
37 |
$329,000 |
$378,876 |
|
77 |
$7,995,000 |
$9,194,876 |
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38 |
$339,000 |
$398,876 |
|
78 |
$8,695,000 |
$9,994,876 |
|
39 |
$369,000 |
$428,876 |
|
79 |
$9,395,000 |
$10,994,876 |
|
40 |
$399,000 |
$458,876 |
|
80 |
$9,995,000 |
$11,994,876 |
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How do I know which range to select?
Your PVRM certified Prudential Real Estate sales professional is able to assist you in determining the approximate value of your property, based on what similar properties in your area have sold for recently. The ideal value range will have a top value that most closely matches what your property would be listed for if it were a traditional fixed-price listing. The low end of the range ensures that more buyers will be attracted to your property.
Won't buyers just make an offer at the lowest price in the range?
Buyers typically have their "Wish Price" in mind whenever they make an offer on a property, regardless of how the property is being marketed. Most astute buyers are keenly aware of the approximate market value of the property prior to submitting an offer and understand that their initial offer very often is the beginning of the negotiation process.
Why would a seller who lists their property at the top value of the range look at a low offer at the opposite end of the range?
Sellers who market their property using PVRM understand that buyers have a "wish" price at which they would like to purchase a property. By marketing a property through PVRM the seller is agreeing to consider all offers within the prescribed range, understanding that without an offer, there are no negotiations! Without PVRM some buyers never get the opportunity to begin a negotiation.
PVRM seems to benefit the seller. How does it benefit a buyer? Most buyers know how much they can and want to spend when looking for property and typically search for property within a "range of affordability". Properties marketed using PVRM will show up in many more "range of affordability" searches, dramatically broadening the number of available properties for a buyer to consider.
Aren't we deceiving the buyer by trying to get them to fall in love with a house that they really can't afford and that costs more money than we know they want to spend?
The average buyer rarely discloses the "maximum" amount of money he/she wants to spend. Many times buyers can afford more than they let you know, or they may have reserves for a higher down payment than they have told you. On the flip side, we don't always know what a seller is willing to accept. It is NOT our job to attempt to assume what the buyer/seller wants. We need to be flexible to accommodate the needs of our clients.
Doesn't using a range make it look like we don't know what the house is worth?
No Realtor® knows for sure what any buyer or seller will offer or accept. PVRM allows "free market" forces to determine what a property is worth. However, a good agent will have done his/her homework, and will have done research on the area to determine the likely approximate selling price.
Prudential Value Range Marketing is a lot more work and time.
Yes, PVRM can be more work. More work negotiating offers! More work selling homes faster! If you sell a client's home faster or find a buyer's dream home and satisfy their needs in the process isn't that time well spent?
No one else uses it around here.
PVRM is growing! It is currently being practiced in fifty two states and provinces in North America and has experienced unprecedented support and success by thousands of Prudential Real Estate Network members and cooperating brokers.
This is just a Prudential thing. Yes, PVRM is an exclusive marketing program for the sole use of Prudential Real Estate Network members, however things are changing. Successful agents know that in order to do well, 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.
