Ditch the 9s When Pricing Your Charlotte Real Estate

By
Real Estate Agent with www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 228209

Ditch the 9s When Pricing Your Charlotte Real Estate

Most, if not all, Charlotte real estate buyers start with an Internet property search.  Even buyers who are working with real estate agents start the weed-out process via the World Wide Web. 

Because real estate has such a strong virtual presence these days, smart internet marketing (including price setting) is an absolute must for selling your home quickly.  Here are a few pricing techniques to maximize the number of potential buyers who find your home when they search for Charlotte real estate online:

  • Don't discount price your Charlotte home for saleThe theory of the 9s - Most real estate search engines have parameters that filter listings based on $25,000 or $50,000 price blocks. For instance, you can search for houses valued $150,000-$200,000 or $200,000-$250,000. Many sellers don’t seem to take this into account.  Instead, properties are listed using the same marketing techniques that grocery stores use to sell you a gallon of milk — they use a lot of 9s in the pricing to make it look less expensive. However, today’s buyers aren’t going to be fooled by that system. 
  • Spanning markets - While you might think listing your house for $399,900 will make buyers see your home as a bargain, you might actually be losing out on a lot of interested buyers. When buyers search for houses from $400,000-$450,000, your property won’t show up, so you’d be better off upping the price a little to $400,000.  Then you’ll expand your potential buyer base because it will show up in property searches priced $350,000-$400,000 AND searches priced $400,000-$450,000, thus capturing TWO pools of buyers rather than eliminiating one altogether--and with only $100 in your price!
  • Pros and cons of under-pricing your home - If you’ve priced your property somewhere in the middle, like at $309,000, common sense might tell you that lowering the price $9,000 to price it at $300,000 would be undervaluing it.  However, getting many more buyers through the door will certainly help your property sell faster. While I do not recommend purposely under-pricing your home, if you did happen to undervalue it, buyers will notice and you might end up with a multiple-offer situation allowing you to get even more from your property.

Don’t resort to out-dated, discount pricing marketing tricks that might actually be hurting your chances of a fast sale at top dollar. 

If you need help pricing your Charlotte real estate, I can help.  Call me today at or email me for more information. 

 

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Re-Blogged 4 times:

Re-Blogged By Re-Blogged At
  1. Barbara Martino-Sliva, Top Producer 05/08/2011 11:04 AM
  2. Sharon Alters 05/08/2011 03:26 PM
  3. Debra Parker 05/09/2011 06:05 AM
  4. D B 05/09/2011 07:10 AM
Topic:
Home Selling
Location:
North Carolina Mecklenburg County Charlotte
Groups:
The Lounge at Active Rain
Posts to Localism
Local Expert
Charlotte North Carolina Area
Tags:
charlotte nc sellers
charlotte home seller tips
pricing your charlotte home to sell

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Rainer
332,782
Irene Kennedy Realtor® in Northwestern NJ
Weichert - Lopatcong, NJ

Debe,

This is one of the first tips I acted on thanks to AR.  A few of my office mates are now doing the same but many still think the old way is preferable.  I haven't done a study on it but perhaps should!

May 09, 2011 01:00 AM #61
Rainmaker
917,667
Larry Brewer - Benchmark Realty llc
Benchmark Realty LLc - Nashville, TN

Debe - I think this makes a lot of sense, and I know that most people search the way you suggested, because I see it in my IDX.

May 09, 2011 01:15 AM #62
Rainmaker
1,364,527
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Debe, with the way real estate search engines are geared towards even numbers it makes sense to drop the nines. Good Post!

May 09, 2011 01:57 AM #63
Rainer
232,598
Bob Zorechak - ABR, GRI, e-PRO
Keller Williams Realty Metropolitan - Morristown, NJ
Sells Homes in Morris/Somerset/Hunterdon Cos., NJ

Your explanation makes perfect sense to me.  I will try it going forward.

May 09, 2011 02:40 AM #64
Rainer
273,930
Coral Gundlach
Compass - Arlington, VA
Real Lives. Not Just Real Estate.

Debe: I've never heard a buyer think a seller is desperate to price at X99 - that is fascinating to me that you and other commenters have!  Pricing in the 99s It is a very common practice around here.   And especially going from the 900s to over a million, I do think that 999K is way more comfortable that making the big leap to a million.   

May 09, 2011 02:47 AM #65
Rainmaker
301,813
Dan and Amy Schuman
Howard Hanna Real Estate Services - Solon, OH
Luxury Home Specialists

We have never been a fan of the 9's for many of the reasons you mentioned. Pricing at certain levels, like at 700K will get you people above and below vs. pricing at 699K. There may be something psychologically more appealing to looking at a home that starts with a 6 vs 7, but if the home is nice, people will still want to see it.

May 09, 2011 04:16 AM #66
Rainmaker
2,415,403
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Debe...the nine queen....Those that market salute you....good post and thank you Debe

May 09, 2011 04:34 AM #67
Rainmaker
274,201
Ron Tarvin
Residential, Investment properties, rehab projects, property management, luxury homes, new construction! - Katy, TX
Broker, Katy, Houston, Cypress 77450,77494,77095

It's classic PERCEPTION VS REALITY.  If you're discussing prices then $299,900 SOUNDS better than $300,000.

However, the Technology really IS what rules the day.  SO a search of $300,000-$325,000 doesn't pull up $299,900 even though that buyer likely WOULD consider that home.  The problem is this:

Buyer goes and searches $300,000-$325,000 and pulls up 45 homes.  They narrow it down to 12 out of that.  They see the 12, and choose one of those to purchase.  They put the offer in and close and the $299,900 never even had a chance.  HOWEVER, with really picky buyers, they may consider those 45 homes, eliminate 42 of them, see 3 of them, NOT like any of them and move to a variation on their search that MIGHT pick up that $299,000 home.  So it ultimately DOES get seen but only because the "picky" buyer didnt like what they saw initially OR because there was not much available in the bracket they originally searched!

 

May 09, 2011 04:46 AM #68
Rainmaker
1,558,015
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Debe, I was waiting all day (yesterday) to comment on this post.  I wasn't able to log on :-(   Great topic and it's an interesting phenom.  We're so used to that mindset, and it's a  pet peeve for me as well.  Which is why I do a very broad price spread in searching for clients -- don't want to miss out on anything.

May 09, 2011 04:56 AM #69
Rainmaker
418,738
Ann Nguyen
eXp Realty - Truckee, CA
Lake Tahoe Truckee Homes For Sale

Debe,

I agree with you whoheartedly. I recently price a listing at 1 million to capture buyers who want to go to 1M top and others who want to start at 1M. Some other neighbors questioned why I did not price at $999,000 but so far the showings proved that the 1M listing price had attracted buyers in both the upper & lower price range.

May 09, 2011 05:21 AM #70
Rainer
25,706
Debra Parker
Debra Parker Real Estate, Inc. - Stuart, FL
Realtor - Stuart Florida Homes for Sale

Thank you for the great advice to help sellers get more buyer for the "right" price!! :) 

May 09, 2011 05:58 AM #71
Rainmaker
191,002
Billie Hillier
http://702IsHome.com - North Las Vegas, NV
Savvy Home Realty Solutions

Great post! If you look at how people search for homes in your analytics, it makes 100% sense.

May 09, 2011 07:21 AM #72
Rainmaker
68,959
Joe Lane Richland
Kennewick Richland (and West) Pasco WA Homes For Sale - Richland, WA
WA Realtor, 509.438.9344 www.LaneRealEstateTeam.com

Funny thing is that my wife posted the very same thing several months ago and it was featured as well.  :)

May 09, 2011 07:56 AM #73
Rainmaker
1,034,398
Bob & Leilani Souza
Souza Realty 916.408.5500 - Roseville, CA
Greater Sacramento Area Homes, Land & Investments

Debe, I wholeheartedly agree...and I think it's especially important to consider pricing around $25k increments as well, since many online home searches are categorized that way. :)

Leilani

May 09, 2011 09:08 AM #74
Rainmaker
3,246,306
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Debe

You make an excellent point, we are working in a whole new arena.

Good luck and success.

Lou Ludwig

May 09, 2011 03:27 PM #76
Rainmaker
558,018
Cherise Selley
Selley Group Real Estate, LLC - Colorado Springs, CO
Colorado Springs Realtor

Debe,

Great tidbits about the 9s.  Hope you had a wonderful weekend.  And I continually pray about your new business success... g

May 09, 2011 03:52 PM #77
Ambassador
3,153,316
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Jeff,  I recently had a seller who was determined to list at $346,999.  I convinced them to go UP to $350,000.  We were the 23rd listing in the complex to go on the market and the first to go off--we were actually a bit above the other properties, price-wise but, when we got to Closing, I asked the buyer what price range they had been searching--$350 - $450K.  The $350K was at the bottom of their price range and they were thrilled to have found their dream home for less than their 'max' in their range.  My sellers boasted that I had told them so and they were glad that they'd listened!  

Marketing other products is different than marketing real estate as buyers are savvy and know are doing most of their searching on IDX sites.  Our ranges in those sites are in $25K incriments.  If my sellers are near one of those cut-offs, then I suggest that they go to the bracked number to be found by two different pools of buyers.  In our area, if you search 00 - $450,000, you'll get thousands of listings and that's not what anyone is doing on any of my IDX searches.

Tim:  Wish I did have that data and that definitely prompts me to see if I can get some pulled in order to convince some of the straggling sellers who want to price at the 'odd' price.  The one at $450K was at $479,000 and moved to $450K at which time, we immediately had several showings and ultimately received an Offer.  

We can't always be at those cut-off numbers--for example, the home comps at $185,000, is $15K away from $200K and $10K away from $175K.  That's alot of movement just to get the price within the search parameters.  We can't really ask that sellers move that much for an initial listing.  $184,999 sounds like WalMart pricing and we're not trying to 'fake out' our buyers or make them think that this is "discount housing!"  So, we leave it at $185,000.

OH, and my $235K just dropped to $225,000 today!  I sent them to this article and it made sense to them so, they priced at the 'mark!'

Thanks everyone for your comments--I do hope this helps you as much as it's helped me!

May 09, 2011 05:28 PM #78
Rainer
247,691
Doug Bullwinkel
Envoy Mortgage, NMLS 6666 - Roseville, CA
Mortgage Loan Originator NMLS #281609

It can be a lot easier to write an offer for an even number as well.  Congratulations on your featured post.  You make a very good point.

May 09, 2011 08:00 PM #79
Rainmaker
1,503,322
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

The 9s seem so much like a car lot ad! I agree it is not useful!

May 10, 2011 01:04 AM #80
Rainmaker
1,779,737
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Debe, this is such a great post..i ditched mine last year after tousling with sellers ...outcomes were great too!

May 10, 2011 07:05 AM #81
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