Here's a perfect example of how Realtor's thinking gets stuck in the past. Ever notice how many listings are priced at a number ending in 900? Such as $299,900 or $349,900. Does anybody believe that this kind of pricing costs you showings? Let me explain. Back in the dark ages when I started in real estate we all used the MLS book. If your listing was $100 less than the competition, you might appear on a previous page and get a few more showings. Now that it's all done on the computer, think about how listings are set up. If there is a group of buyers looking between $275,000 and $300,000, and your listing is $299,900, that's fine. What about the group looking between $300,000 and $325,000? Your listing might be perfect for them, but IT'S INVISIBLE! Many realtors will look in slightly higher range, assuming some negotiating will take place, but in these days of increased inventory, most do not look lower, because they have plenty of listings to show. Do your sellers a favor. Round up $100 (especially if you're at a multiple of 50,000 or 100,000), and catch a few more showings. By the way, expaining this to a potential seller makes you look much smarter than the competition.

 

 

7 Comments on Secrets to pricing a house to sell or "why the 900?"

DEC
04
2007
128,890 Points 1 Featured Post Outside Blog

I favor a round up when it is $299,900 but not when it is 302,900 that is just a bad list price at that point.

J.

5:07pm • #1
106,688 Points 12 Featured Posts
Rich - Welcome to my world. I have been preaching this for some time. Agents have to use the sense god gave them. Price homes so search engines will find them. Well said
5:13pm • #2
233,860 Points 3 Featured Posts
good post, i also have been preaching this fo r years
5:14pm • #3
257,607 Points 1 Featured Post Localism Sponsor Outside Blog Hit Router
I just read this same thing under someone else's blog. It's a great point and glad I have read it. Your Orlando & Lake Mary, Real Estate Expert, Heather Joubran
5:18pm • #4
117,415 Points Localism Sponsor Outside Blog
Makes total sense. Thanks for the info.
5:25pm • #5
Great post Rich.  Somewhat like BASF, we didn't invent the concept we just make it better.  Sellers still don't understand what I'm trying to tell them so I let them search for themselves then they easily understand the process.
6:07pm • #6
239,419 Points 11 Featured Posts Localism Sponsor Outside Blog Hit Router
In my market area the "tradition" was the $XXX,950. I really had no idea why. I came into the business right when the "books" were becoming obsolete and the online MLS started. I just went along with the trend until one day I though - hmmmm might make my listings stand out if they are different. So I started pricing $XXX,000. I had no idea this was all tied to searches - doh - I feel like Homer!! Thanks for the post!!
6:41pm • #7

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Rich Alpers

Denver, CO

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Colorado Private MLS

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