What is the pricing range for a property, relative to its estimated fair market value?

The chosen answer indicates that the pricing range for a property is typically set at +/- 20% of its estimated fair market value. This range captures a reasonable range of variability, which reflects both the inherent uncertainties in real estate valuations and the flexibility that sellers might exercise in adjusting their prices based on market conditions, buyer interest, and negotiation dynamics.

A +/- 20% range is practical because it allows for fluctuations that can arise due to factors like market trends, property conditions, and local economic indicators. This means that if a property's estimated fair market value is $300,000, a pricing strategy within this range would allow for a selling price that could reasonably vary from $240,000 to $360,000. Such a range is common as it provides enough flexibility for sellers to list their properties competitively while still allowing for potential negotiations with interested buyers.

Other ranges such as +/- 10%, +/- 30%, or +/- 40% can be less practical. A narrower range might limit sellers too tightly, reducing their ability to attract offers, while broader ranges could lead to pricing strategies that appear less credible to potential buyers, ultimately impacting the sale process.