I was just reading a post on the website FortuneBuilders.
It was a very interesting piece written by Than Merrill from the popular A&E show, Flip This House. Than was discussing everything that can and should go into pricing a home for sale.
As a Realtor, the one thing that keeps me up at night is pricing.
I want to be absolutely sure I get my clients the most possible money but, at the same time, I don’t want a house sitting for too long without any offers because it’s overpriced.
In real estate, more-time-on-market = the kiss of death!
My husband says I take this stuff way too seriously, but honestly, I would want someone to take my money just as seriously if I were the client!
Anyway, in reading through the FortuneBuilders post, something stuck out to me as interesting…
For example, research has found that an exact asking price, such as $737,485, often indicates that the price is less negotiable than a round number, such as $800,000. Announcing a precise price demonstrates confidence in the numbers.
Hmmmm, I see this type of quirkily-numbered pricing strategy used a fair amount in my marketplace and I always thought it a bit odd.
I try and encourage my clients to price in even, round numbers so they are included in more buyer searches.
In my area, buyers tend to search in $100,000 increments, in other parts of the country perhaps they search in smaller increments. It’s helpful for local Realtors to know those search parameters increments for their area.
As an example, say a client wants to list their house at $705,000, adding that extra $5,000 to give themselves some negotiation room. I would encourage them to list for $700,000, that way they will be included in any searches for buyers looking from $600,000-$700,000 AND they will also be included in any search for buyers looking from $700,000-$800,000. If they price the house at $705,000, their listing would not be included in the first search that only shows listings up to $700,000.
In the grand scheme of things, it’s probably worth the $5,000 cost differential to be constantly included in two search parameters vs. one.
In any event, using some crazy number price strategy will not make you stand out, it will actually limit how many times your home is exposed to buyers. I am glad to see there is actual research to support this theory. I will have to seek that study out
So, the bottom line…Price your home using round numbers and you may just increase your home’s exposure to more buyers…One Realtor’s Opinion!