Yes, there is an art, but it is the book I am talking about here. One of my biggest pleasures is the buying and reading of books. So, I have decided that when I have found a good book (or a tidbit from a good book) I will include it here if it is particularly useful to understanding real estate. The Art of Pricing is not a real estate book, but its topic is important for any business and its tips useful for anybody when establishing pricing.

There are a number of tips in the book, one of which is that studies have shown that the number 9 connotes "cheap" and the number 0 connotes "quality". In other words we assume that something priced $60.00 is of higher quality than something priced $59.99. This is certainly true when it comes to establishing a price for housing.

What do you think? Would you react differently to a house that is priced at $355,000 or $354,999? I believe the answer is clear. Even if your perception of quality isn't completely different, at least you assume that the seller or seller's agent is trying to get one over on you. As if you don't know that the two numbers are essentially the same. Could you imagine saying, "but, honey, this home is $1 cheaper!"

I want to know what you think. Please comment and tell me if pricing like this makes a difference to how you react (to the house, seller, agent, whatever!).

 
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6 Comments on The Art of Pricing

OCT
20
2008
Hit Router Attended Rain Camp

I try and price homes at the break points that realtor.com and other consumer sites use. If a break point is 350,000, then buyers looking above and below that point will find my 350,000 listing. At 349,900 the over 350,000 buyer won't see it.
8:47pm • #1

Wow thanks for the tip. Pricing is key! especially in this market. I will definately check it out.

Jared

www.jared.pro

www.tubeutah.com
8:50pm • #2
Localism Sponsor

Rich - Our MLS break-points are similar and this was my original reason for encouraging such pricing. I thought that this was an interesting take on the psychology of pricing as well. Thanks for the post and the great point!
8:50pm • #3
1 Featured Post

Thanks for sharing.  I will check this book out.  I love reading as well, although lately I have been reading more AR blogs than books.  It's so addicting!
8:55pm • #4
1,402,551 Points 54 Featured Posts Outside Blog Called Shot Master

Pricing a home is one of the most sifficult things to do in this market!
8:56pm • #5
OCT
21
2008
567,292 Points 5 Featured Posts Outside Blog

Brandon: It realy depends on the search criteria. One way it would be found, the other way I may not. I have even seen things like... $349,921  

Great question.. Looking forward to other answers
12:46am • #6


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Brandon Weber

Sacramento, CA

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Weber Property Group

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