Charm Pricing

Grant, In my market I have found the "Charm Pricing" to be a negative instead of a positive.  When I can get a seller to price their home at an even value for exactly let's say $125,000...this home will get twice the interest as a listing that selected $124,777 or $124,421.  The reason is that even numbers in the real estate websites will expand the number of buyers who will view the listing.  At $125,000 the buyers looking at the $100,000 to $125,000 will see the home in addition to all the buyers looking for $125,000 to $150,000 so you are actually doubling the exposure of your listing in this example by not using the "Charm Pricing".  In some instances it is difficult to get the seller to accept this logic even after showing them how different websites work but the ones who get it really appreciate the advice.

I have tried it. The problem I had was having to remember what the price is on the home. I don't know that I received any more calls than I would have received if I have used just regular numbers.
Let me know if it works for you.

Rick Irving
United Country Real Estate
Fort Worth, Texas

I have also found it to be negative.  In this buyer's market, simplicity is best.  we have all kinds of customers saying 419,800 - I rather they say 419 or 420.  Usually the buyer looking at the "charmed price" has a glassy - "what's going on?" type of look when they see it.

Ines

Rick and Ines, I agree with both your comments.  Keep it clean and simple and make the home appeal to the broadest number of buyers and your success rate increases.

Grant...

I was going to say what Ines said about simplicity...

Now I have nothing to say except a simple HELLO :)

 

 

I recommend that sellers price taking into consideration online search techniques and their break points.  You can get twice the viewers by pricing appropriately, because you'll get everyone that searches up to a certain point and everyone that searches from that point up to a higher point. 

"Charm" pricing is similar to the old "I'll price it at $1.99 and they'll think it's a WHOLE lot cheaper than the $2.00 one" psychology that used to work, but has been outdated by technology.  If they don't even see it because it's $100 below the pricebreak they chose, the psychology can't work on 'em! ;-)

I like the notion of pricing "flat" so that it might fit into 2 pricing brackets.  It seems that more exposure couldn't hurt.  I'll mention that to my realtor partners.