Over the past 21 years I have always believed that the best pricing strategy was to make the price appear as low as possible. For example if I had a property which I felt was worth $150,000 I would list it at $149,000 in the hope that a person would think it was a better value. I had been taught that my entire career.
I have recently changed my strategy to meet the current market conditions. If you have ever searched for a home I am sure you have noticed that all websites allow you to choose a price range for the property you are searching. If you use the prior example ($149,900) and you were to search for a home in the $150K range you might search $140,000 - $150,000 and it would show up in your search results.
In that case it would be in the high end of the range you were searching and in that were the range you were looking at, you may be more apt to want to make a low offer should you decide to purchase the home. Let's assume another buyer was looking at slightly more expensive homes in the $150,000 - $165,000 price range. In that case your home would not show up as it is below $150K... right?
With my new strategy of listing at an even round number of say $150,000, that same home would in fact show up in both searches. By showing up in the low end of the higher priced search, the buyer is less likely to make a low offer as it is at the low end of the search criteria. Naturally if there are few homes in any given price range the search parameter may be much wider but I am sure you get my point. For this and other tips visit my website at www.JulesYates.com.
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