The Most Important Dollar in Real Estate
A lot of factors come into play when selling a home. One factor is psychology vs strategy in pricing. So, which one of these prices is a mistake: $499,999 or $500,000?
The pricing mistake is offering a home for sale $1 less than a buyer price band.
Many homes are listed at prices that have 9’s instead of whole numbers. For example, it is extremely common for a property to be listed at $499,999 instead of $500,000. Doing this is a major mistake! Most real estate websites and apps have price bands that end in whole numbers. For example, Zillow’s price bands are $400,000 to $450,000 and $450,000 to $500,000.
When a home is priced at $499,999, none of the buyers searching from $500,000 to $600,000 would see the home in that search. What makes it worse is that the lower price band buyer is at their limit. Whereas, the higher price banded buyer would be at their beginning point. If the property is on the market for $500,000 (instead of $499,999), both sets of customers would be able to see the home in their search.
By pricing your home in $10,000 round increments it will be seen by buyers looking up to your price, and from your price up. Skip the psychology and focus on the strategy of putting your home in front of more people. It will bring you more opportunities to find the perfect buyer.
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If you have any real estate questions, contact me at [email protected] or just give me a call at 707.775.7654.