Why Did You Suggest I List My Home for $350,000
Sometimes I run across blogs that have absolutely nothing to do with home inspetions but find they may be of value to other people I know or work with.
That's the case with this one about pricing a home on an even number instead of using that theory of nines.
It makes great sense to me. I did a quick search of the local MLS just to test it. Wow, there's a LOT of realtors missing the boat on this one by using that theory of nines.
In our local MLS,
I counted 32 homes listed between $349,00 to $349,900. Everyone of them misses the boat when searching for homes valued at $350,000 to $400,000.
I stopped counting at 55 for the ones between $249,000 to 249,900. Wow.
I hope several of the local agents I know read this.
But I'm glad to see one of my favorite local realtors is NOT committing this Faux Pas! Good for you Lizette.
FYI: This really isn't a question about the value...all three Realtors who went on the listing appointment came out with about the same value for the home....what the client was asking me about in this email was why 350k...instead of $349,900 or 348,775 (what the other two agents suggested).
Client Question: Jeff, both the other agents suggested I list the home just below the 350k you suggested because it looks better to potential buyers. They pointed out that at stores you go into or gas stations usually price just below the rounded off number. I do not want to make a mistake and price wrong by just a few dollars....
The email was much longer...but you get the idea.
Here is my answer (I am leaving names and Realtors out of this post). I will call my client John.
My Answer: John, The $350,000 I suggested is not a mistake. Pricing your home the way the other two agents suggested would be the mistake and here is why:
First Keep in mind...we are not selling groceries at Safeway or Socks at WalMart...I am sure tuna looks better on the self at .99 cents instead of $1.00...and socks look better at $9.99 instead of $10.00...but we are selling your home...not socks or tuna.
Buyers today (94%+ based on NAR Stats) go to the Internet first when buying a home. They shop based on rounded off numbers...as an example $300k to 350k...or $350k to $400k. They do not go from $349,900 to $362,750...off pricing puts you in a box....and here is what I mean by that....if you price at $249,999 you are not going to get in the $350-400k search. Does this mean your home does not compare to a home priced at $360k? Here is what is even worse...when automatic email notifications of properties go out (A client wants all the properties in Denver between $350 and $400k emailed to them) it can be set up to automatically do this each day. Your home priced at $349,990 does not fit between those two numbers...so the client never sees your home and that means there is little or no chance they will fall in love with it and buy it.
By pricing the way I suggested...right on $350,000 you will be the most expensive home in the $300-$350 search...or the least expensive home in the $350-400k search...but YOU GET IN BOTH SEARCHES!!!! This increases your chances of selling by putting your home in front of more buyers...and trust me...no buyers are out there saying..."At $349,900 put this one on our list...but at $350,000 these guys are crazy...do not show us that one."
It seems to me that if an agent tells you to price at $349,900 or $348,750 what they are really telling you is they do not understand the Internet and how people buy homes today!
If You have any questions about Highlands Ranch, Lone Tree, Castle Pines, Acres Green, Trailmark at Chatfield, or any Metro Denver area Real Estate...Please contact Jeffrey DiMuria at jdimuria@aol.com or 303.725.5145. See Jeffrey on the web at www.MileHighFineHomes.com
Jeffrey DiMuria
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