In a real estate transaction, the price range refers to the amount of money a prospective buyer is willing to spend on a property. Most buyers search for properties that fall within certain specific guidelines. Budget restraints may determine the amount of money that they can comfortably spend without overextending themselves. When searching for a certain property type, prospective buyers should identify specific criteria desired in order to determine the current value of a property. For example, a buyer should determine the approximate amount of square footage required and decide upon the number of bedrooms and bathrooms needed. Based on the basic requirements and the desired location, buyers then decide upon a price range. The price range usually extends from the least amount they are willing to pay up to the maximum amount they can afford. These amounts can vary from several hundred to several thousand dollars.
