Home pricing strategies

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

 
Posted by Ben Kinney on 06/06/2007 01:14 AM   Comments (8)   , ,  
Post is included in group: Active Rain Newbies
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8 Comments on Home pricing strategies

Ben - you make a good argument for both pricing strategies.  Thanks for making me rethink a bit.

06/06/2007 02:07 AM by Laguna Homes|Laguna Condos| Laguna Real Estate|Marlene Bridges (Sherman Smith & Associates)

It is  a good point. 

06/06/2007 05:59 AM by GITA BANTWAL, REALTOR BUCKS COUNTY, PA HOMES (ReMax Centre Realtors)

Thanks for comments....  make sure to check out my new negotiating post.  I put some work into that one.

06/12/2007 12:50 AM by Ben Kinney (Home4Investment Inc.)

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.

06/12/2007 07:15 AM by Tim & Pam Ross-Wade (CENTURY 21 Lakes Region Realty)

Nice sitie Tim, Thanks for the comment

06/12/2007 09:45 AM by Ben Kinney (Home4Investment Inc.)

Thanks for the tips.  These days you need a prcing crystal ball!

06/17/2007 06:44 PM by Endea Thibodeaux, CLHMS, RECS Real Estate Auctions (Auction2Sell, LLC)

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. 

06/29/2007 02:01 PM by Marty Van Diest, Your Alaskan Realtor (RE/MAX of Wasilla)

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.

08/11/2007 01:16 AM by Dionne Morgan REALTOR®,GRI, e-PRO (Realty World Solano Realty)

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Real Estate Agent: Ben Kinney (Home4Investment Inc.)
Ben Kinney
Bellingham, WA
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Home4Investment Inc.

Office Phone: (360) 543-0966
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Real estate and Community information resource for Bellingham WA in Whatcom County.

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