So you're selling a home and you're wondering how much you want to sell your home. Due to the excitement of having a profit, you think about it everywhere you go -- from the bathroom, before going to bed, even while shopping for groceries. While picking up on the items in the chips section, and you noticed that the prices always end in 9 -- $2.99, $4.99, etc. Then you asked yourself -- should I sell my house the same way?
First off -- this pricing thing that end in nines is a part of what is called "strategic pricing," specifically the "left digit effect" -- basically the principle is to make the prices look attractive to the buyers. In a study conducted by MIT and the University of Chicago, they found out that nine-ending prices give the illusion of the price being perceived as something cheaper than the others, even if there are items that are more expensive than the others.
However, this has been tested to apparel, chips, goodies, and the things that you can see the most in groceries, convenience stores, and shopping malls. Would the same thing apply to the real estate business? Is strategical pricing even effective in real estate? Just to give an idea -- being in the real estate business for almost two decades, we did use the said strategy back then to sell our homes.
However, in such a strong market here in the DMV area where buyers search fo properties by the region, it doesn't really matter. The products I mentioned earlier and the places where you get them from are for advertising purposes and to make things more attractive to them by face value. However, for real estate, a lot of things come into play -- location, structural integrity, convenience, how the neighborhood is going, and more.
Also, homes are different from one another, and it's not an easy comparison between two properties where a mere left digit trick would make it more attractive. Sure, it might help and you'll always be free to decide how you want the price to look like. But at the end of the day, it's all about the effort you put in to the home to make its market value go up -- renovations, staging, location, contract negotiations, and more.
It's not just about getting as many buyers as you want -- it's all about finding the right buyer for you. And one thing to do that is to start by listing your home at a reasonable price. Once you nail that and made sure that all things considered, the home looks attractive after the renovations and preparations you've done, the right buyer will come at the right time, and with the right price. Talk about a win-win.
Interested in selling your home, or do you have any questions about the real estate market? Let's team up -- 703-625-4949 or email at info@enovahomes.com. Make your move today!
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