There are many pricing strategies, but after reading Why list with the #8?, I thought I'd throw it my 2 cents?
The common philosophy is to price a listing below a break because it sounds or looks better psychologically. For example instead of $270,000, price it at $269,900 or instead of $200,000, price it at $199,900.
When it comes to pricing and you are close to a price break ($25,000, $50,000, $75,000 or $100,000), the price should be strategically placed at the break (at least initially). Hear me out on this.
When I do a reverse prospect search for my listing, here's how the numbers break down:
At $419,900, we lose 21 prospects and at $434,900, we lose 27 prospects. By pricing the home at $425,000, we get the greatest exposure to the maximum number of prospects...in this case 114 prospects. Here's why: First, when agents set up criteria on MLS for a buyer search, they set up brackets. Second, when buyers search online at most major real estate websites, they are given the option of searching at $25,000 breaks. By pricing the home at $425,000, you will capture buyers searching between $400,000-$425,000 AND buyers searching from $425,000-$450,000. Pricing it lower than $425,000 means you actually lose Buyer Prospects. We don't need to lose any prospects!!! So price it at the break if you can! Where are you going to price your next listing?
Michele Reneau - Military Relocation Specialist with Carolina One Real Estate in Charleston, SC.
Rated number #1 featured Summerville, SC Realtor on Activerain.com. As Featured on HGTV's House Hunters. Publisher/Author for Charleston Real Estate Update including featured listings and sold properties, and monthly statistics on Charleston Real Estate Market. The Charleston Relocation Expert specializes in military relocation, first time homebuyers and creating marketing exposure to sell your home in Charleston, Goose Creek, Summerville, North Charleston, Hanahan, Mount Pleasant and the surrounding areas in Charleston County, Berkeley County or Dorchester County, South Carolina.. I can also be contacted by email at firstname.lastname@example.org. To view all Charleston Metro area Homes for Sale Click Here and then click on Search for Homes. With over 25 years of Lowcountry Living, I know the Charleston Metro area.