Friends Do Not Let Friends Price Homes At $999,999.99
Colleen Lane may be across the continent in Washington, but her observations about price points in the multiple listing service are very valid. Using her example it is easy to understand that the strategy maximizes the number of prospects who will be given the opportunity to consider your home
We immediately get a snapshot of our competition's knowledge of technology and search behavior by the way our competition prices their homes. We sell all sorts of Kennewick homes and we are amazed at the lack of search behavior knowledge the competition has. According to the NAR, nearly 90% of home buyers are searching for their home online. When the online home searcher searches, the query is not homes between $267,000 - $282,000, for example! When the online home searcher searches, they search in $25,000 increments! So, when ya price your next listing, price the home within a $25,000 increment!
For example, let's say you have a home you and the seller want to sell at around $245,000. Price the home at $250,000 so you catch the $225,000 - $250,000 search queries, $250,000 - $275,000 search queries, $200,000 - $250,000 search queries, $250,000 - $300,000 search queries, and $200,000 - $300,000 search queries. Did you catch that? Pricing the home at the $25,000 increment resulted in the potential of 5 different types of search queries. If you had priced the home at $249,999 you will miss any search query above and including $250,000!
If you have a higher priced luxury home, price the home at the $100,000 mark if possible. In other words, if your CMA shows your listing will probably sell in the $685,000 range, then list the home at $700,000. You will get all the $25,000 and $50,000 searches listed above, but in this case, you might get the $100,000 incremental searches: $600,000 - $700,000 search queries, and $700,000 - $800,000 search queries!
As always, if needing help and/or a Kennewick Realtor®, please contact us or phone us any time: 509.438.9344
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