Can any agents tell me why Precise Pricing is perceived by some buyers as "more accurate" in pricing real estate than a round figure? Maybe because it stands out from the crowd of listings and is different which to me is just different and not "more accurate"? I read a post here on AR that a University of higher learning somewhere did a study and somehow concluded the Precise Pricing is perceived in many markets as "more accurate"? can anyone shed some light on this topic?

 
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9 Comments on Precise pricing better?

MAY
10
2008
154,636 Points 13 Featured Posts

I just listened to the NPR audio on the study. I have to agree with the real estate agent that they spoke to.  People aren't use to seeing houses priced that way, and I do think people would see it as odd.

We have an agent here who prices oddly like $123, 321 (the first three numbers are always in reverse in the end) and my clients think it is bizarre.
5:41pm • #1
139,335 Points 1 Featured Post Localism Sponsor

Stephen:

I had not heard of this type of pricing. I need to go and do research.  
5:49pm • #2
284,633 Points 3 Featured Posts Localism Sponsor Outside Blog

When I see this type of price. it generally strikes me that either the agent or the sellers are playing games.  No one can price a product as unique and expensive and negotiable as a home, with precision.

I think that the seller may be trying to indicate that the price is non-negotiable.  I don't think it's a particularly good idea.
6:19pm • #3

Thank you for your comments Brian. I think the main idea is to set it apart to stand out from the other listings in my mind and maybe some buyers minds as well?!
8:18pm • #4
MAY
11
2008
207,475 Points Outside Blog

Brian - it does not indicate to people that the price is non-negotiable, and people don't see it as "playing games." It's a psychological factor. If your price ends in an odd number (i.e., $xxx,947), it does a couple of things. 1) it obviously stands out; and 2) it gets people talking and wondering how you arrived at that price. And in today's market (or any market for that matter), that's what you want to do - be noticed. Most people will ask if you figured out the asking price by the square footage of the home. But it doesn't matter. The more the price stands out, the more interest it creates. The home still has to be priced right, of course, in order to sell.
8:36am • #5

Lewis thanks for your comments. Yes I think that it would stand out since its different than all the other listings and with so many other listings you have to stand out from the crowd obviously. You differentiate yourself from the other listings, get noticed and stand out!! But I still dont think that its a  better way of pricing!?!
9:58am • #6

Lewis, I don't argue that pricing at an odd number makes it stand out.  However, I don't believe it helps a home get sold any quicker or for a better price.  The market determines that.  Sophisticated buyers aren't fooled by an odd number.
4:54pm • #7
284,633 Points 3 Featured Posts Localism Sponsor Outside Blog

Lewis, I don't argue that pricing at an odd number makes it stand out. However, I don't believe it helps a home get sold any quicker or for a better price. The market determines that. Sophisticated buyers aren't fooled by an odd number.

(Sorry, I thought I was logged in above!)
4:56pm • #8
MAY
15
2008

I just read an article that talks about the perceptions of buyers & pricing that says that round prices like  $599,000 or $599,999 (should be used in more expensive properties of more prestige) would be  perceived as a better deal obviously than $600,000 as well as $599,111 (same right numbers) or $599,321 (declining right #'s should be used in smaller priced homes) would be perceived as a better deal or a bargain than $600,000. The buyers eyes and mind read from left to right and if the left numbers are the same then the eyes would go and fixate upon the right numbers. The article also suggests that you use numbers that make computation easier for the mind and the eyes of the buyer to grab their attention!

 

Cape Cod Realtor sdw1
11:14am • #9

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