Urgent Tip For Home Sellers - Don't Make This Pricing Mistake

By
Real Estate Agent with Joe Manausa Real Estate 8508880888

Most real estate agents will tell you that a critical step in selling your home is the correct selection of your initial asking price. It determines who will see your home online and more importantly, it also determines who will NOT see your home.

While I have discussed home pricing in numerous articles, today I will specifically address a pricing technique that I refer to as pricing on the nines. It is also referred to as "charm pricing" and it involves using pricing that ends in a "9" or "99."

Some real estate agents do this without understanding its impact on the buyer pool for the home seller, so I have prepared a short video that shows you what to do (and just as important, what NOT TO DO).

Home Sellers: Don't Do This!


If you watch this short video, you’ll understand why this pricing strategy could stop you from getting top dollar for your home when you sell.

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Joe Manausa Real Estate
1934 Dellwood Drive
Tallahassee, FL 32303
(850) 366-8917

Comments (31)

Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

You're singing my song, Joe! I've been saying this for years and years. I don't believe assets like homes should be "retail priced."

Aug 28, 2020 05:52 AM
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Thanks, Nina Hollander so true ... I'm not selling a couple of hundred homes to a single buyer today unfortunately 

Aug 28, 2020 11:30 AM
Alan May
Jameson Sotheby's International Realty - Evanston, IL
A moving experience!

Well thought out, Joe.  Maybe I'm just old-school, but I still believe in pricing on the nines.  Yes, you're right... $399,999 will cause the property to miss those searching from $400-450,000.  But what if my property doesn't compare well with those higher priced homes?  Maybe I don't want to be compared to $400+?

And what about $389,900?  There are lots of price points in those "in-between-the-searches" areas.  That will show up nicely in the $350-$400,000 search, and still feel like it's less money than $390,000.  James Cash Penny proved that the mind of the consumer is easily convinced that pricing on the nines makes the product feel cheaper... just like the gasoline you mention.

Now, if my property compares well to the higher priced listings... then I agree.  Pricing on the spine (at $400,000, instead of $399,000) makes perfect sense.  Then I pick up searches from $375-400, as well as $400-425,000.

I love your logic, and your presentation... I just disagree with your premise that those who price on the nines are outdated and doing their sellers a disservice. Often we have some method to our maddness.

Aug 29, 2020 06:12 AM
Tammy Lankford,

Bingo.  Sometimes you have a $375,000 house and can push the limit and get more by going 399,900 but if you went $400,000 you might not get lookers at all because it doesn't compare to a $425,000 house.

Aug 29, 2020 10:19 AM
Shirley Coomer
Keller Williams Realty Sonoran Living - Phoenix, AZ
Realtor, Keller Williams Realty, Phoenix Az

Great rational to share with sellers. Buyers do search in ranges.  I have never had a buy say they want to go up to $499,999 - they always say $500,000. 

Aug 29, 2020 07:11 AM
Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

        Thanks for the confirmation, Joe.  I'm listing a house in Betton Woods, I have had this discussion with the Seller.  She is "old school" and wanted a number like $399,900. 

        I am adamant that she should price at $400K even.   I had asked this question on the ActiveRain Question Board, to get some back up for my argument; but your video will do a better job.  Thanks again!

Aug 29, 2020 07:24 AM
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Great video and conversation Joe. As usual it makes perfect sense. Well done. 

Aug 29, 2020 07:52 AM
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

And, thank you so much for your contributions to YouTube Thursdays. Appreciate you. 

 

Aug 29, 2020 07:54 AM
MaryKay Shumway
The Kellstrom Ray Agency, Inc. (Est. 1948) - Sister Bay, WI
Door County Wisconsin's Real Estate Expert

Certain search engine algorithms will still pick up 9s better than zeros.  Food for thought.

Aug 29, 2020 08:40 AM
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Thanks for the feedback Alan May ... you certainly have thought this through. We'll just have to agree to disagree.   My money (and my sellers') will be on showing up in more searches.

Aug 29, 2020 09:10 AM
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Thank you very much Debb Janes EcoBroker and Bernie Stea JD , I appreciate the kind words!

Aug 29, 2020 09:11 AM
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

That is an interesting point MaryKay Shumway , can you elaborate? What search engines and what algorithms?

Aug 29, 2020 09:12 AM
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Thanks Shirley Coomer , it seems we have worked with similar buyers

Aug 29, 2020 09:13 AM
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

That's great Fred Griffin Tallahassee Real Estate , Betton Woods is hot right now, I'm sure you'll sell it fast!

Aug 29, 2020 09:13 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Sometimes I agree with you.  But it depends, depends on the house, depends on the market.

Aug 29, 2020 10:46 AM
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Hi Joe...You're a champion..... and I detest ALL of those 9's...so tacky.... I like the zeros......nice round numbers.....

Aug 30, 2020 01:15 PM
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Good morning Barbara Todaro .... I'm heading your way on Thursday. I'm flying into Boston to drop my daughter off at school.

Aug 31, 2020 04:22 AM
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Great advice!  I so agree and never suggest listing a home on the "9's!" 

Aug 31, 2020 07:46 PM
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

I didn't even have to watch the video in this blog--I never talk about those funky 999 numbers.  Make the amount even so search perameters are easy!

Sep 01, 2020 08:55 AM
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

I can't believe today's consumers are persuaded by the 9's in pricing. The right price IMO is slightly below the fair market value ending in 0's or 5's. If the property is in a desirable neighborhood, and exceptional condition, multiple offers should raise the closing price above fair market value.

Sep 04, 2020 12:23 AM
Kevin Vitali
EXIT Realty Beatrice Associates - Middleton, MA
Helping Massachusetts Home Buyers and Home Sellers

Joe-  I have been doing this for almost 20 years for just the reason you explained.  I couldn't agree more. 

Mar 16, 2021 02:18 PM