Which Price is Right?

Proper pricing in real estate is an important piece of getting your house off the market. Since buyers have the option to pick their budgets online while looking for their next home, for example, they can search for houses in a range of $150,000 to $200,000. However, it is important to list a house at a nice round price to get more clicks from more buyers. So, when putting a house on the market, instead of listing for $249,000, you can list for $250,000 to get a more extensive range of buyers. This way, you get seen by the groups looking for $200,000 to $250,000 and $250,000 to $300,000.

However, Robert Mctague, a real estate agent in New York, offers up some psychological tips to influence more buyers.

The first thing Mctague brings up is having a not so rounded number.You can list a house with nines at the end, so it seems cheaper than a competitor’s. This could make the home seem more affordable, however, McTague mentions that this tactic will not fool smart buyers.

“You should position your client’s home as luxury brands do, not as discounters.” We usually see well-rounded numbers like a dollar candy bar instead of a $.99 candy bar. Some buyers will also not care about the small price difference. However, this does work for those trying to save some money.

McTague also brings up how odd prices seem more legitimate.

“The power of four and seven …[is] evident.” This means a buyer who sees a home listed for $254,000 or $257,000 will think that is a fairer price. They will also think that some thought went into the listing and ask questions like, "Why the extra $4,000?" Or, "why not round up?"

"This suggests to the buyer that a full analysis went into the pricing and that the asking price is exactly what the seller thinks his home is worth," McTague believes this is a good way for the buyer to think this price is a real price, and could also make the buyer believe there is less room to negotiate.

Regardless of price, once you’re ready to embark on the closing process, Setco Services is ready to help you through to the end.