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Many agents price their homes at 299,000 or 299,999

I think this is a mistake because ... think about how users on the internet or how agents search.

They search ranges of $250,000-$350,000 or $200,000-$300,000 or $300,000-$500,000

When was the last time you search $200,000 - $299,000 ???? 

Agent and consumers search $200,000-$300,000 and $300,000-$400,000

So if we are searching those price ranges and we price our home at $300,000 we get included in both searches (200-300 AND 300-400k)

This is my strategy if my home is priced near a 100k or 50k mark because of increased views.

Another strategy that was recommended at a listing clinic was if the home is priced in the middle of a 50k or 100k range the home should be prices price to the closest dollar even if the amount is arbitrary like:

$137,368 or 213,348

Because consumers assume that even priced homes are not carefully calculated and probably just a home price thrown out for the sake of it. When a home is priced to the exact dollar amount consumers assume that some careful calculations were done.

Ben Kinney - Bellingham WA Real Estate

 
Post is included in group: The Art of the Deal

11 Comments on Home pricing strategies

JUN
06
2007
175,181 Points 10 Featured Posts Outside Blog
Ben - you make a good argument for both pricing strategies.  Thanks for making me rethink a bit.
2:07am • #1
JUN
12
2007
Thanks for comments....  make sure to check out my new negotiating post.  I put some work into that one.
12:50am • #3

Great concept.  We do it all the time with our own listings.  Just plain common sense.

Please tour our website WWW.REINNH.COM

Browse and please do comment.

7:15am • #4
Nice sitie Tim, Thanks for the comment
9:45am • #5
JUN
17
2007
2 Featured Posts
Thanks for the tips.  These days you need a prcing crystal ball!
6:44pm • #6
JUN
29
2007
2 Featured Posts

Hi Ben, Just stopping by to read your post for Carnival of Real Estate.

Good points, I practice the first but not the second.  I'll have to think about that. 

2:01pm • #7
AUG
11
2007
1 Featured Post
I agree your pricing strategy is designed for maximum market exposure. In some cultures certain numerals are very bad luck. Prices, streets and address for example contain a number *8* is considered lucky and may merit a head turn. Think about in our culture and the superstition connected to the numbers *13* or *666*. Just thought I share.
1:16am • #8
JUL
10
2008

Great points Ben! I am in agreement with you.

8:05pm • #9
MAR
31
2009

Ben, good article.

But... There are so many factors when it comes to price. It really boils down to the value for the money, and understanding where TRUE MARKET VALUE is sitting for ANY listing.  Please go to www.RealtyPriceTarget.com to SEE HOW WE ARE DIFFERENT.  Our pricing tool can accurately determine market value as well as reveal what the potential reaction to price is going to be under any market condition that your local area may be experiencing. We will even pinpoint the most likely sales price.

Now go to www.RealtyPriceTarget.com to see how you can incorporate a REAL MARKET PRICING STRATEGY.  Getting traffic to the listing is one thing, getting the traffic to respond to the price is quite another.

Allan

 

Allan D
5:04pm • #10
JAN
13
2010
323,164 Points 2 Featured Posts Localism Sponsor Hit Router Called Shot Master

I love these strategies! Never thought of the on-the-fence pricing, or the assumption of exact dollr pricing! Thanks for the great strategies!

11:17pm • #12

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