There was a time when top real estate agents and motivated homeowners priced their homes at $199,900 instead of at $200,000. It was this way for many years and the concept actually originated from the retail sales business where retailers would list and sell a ton more products at $9.99 compared to if they priced the same product at $10.00. You may be wondering what changed and why is $200,000 a more compelling listing price than $199,900. I am glad you are wondering this!
The internet and real estate websites changed the pricing game in a big way. Think back to your days in math class and remember the lessons you learned regarding "Greater than, less than and equal to". Now, think about the last time you were searching for a home online. Most websites don't have you search a specific price, they give you a price bracket to search between. An example might be homes for sale from $150,000 to $200,000. Another example would be homes for sale from $200,000 to $250,000. The new pricing technique should be getting more clear with those two examples.
If an owner of a home lists their home at $199,900...their home will show up on a buyers home search if the buyer is searching $150,000 to $200,000 because $199,900 fits within that price bracket. However, if a buyer was searching for homes from $200,000 to $250,000, that same home wouldbe invisible to this buyer because it would not show up within their $200,000 to $250,000 home search. However, by selecting a listing price of exactly $200,000 you have effectively bridged the gap and your home will now show up on both of the buyers homes searches which will double the number of buyers your home is exposed to. More buyers typically means a higher net sales price and usually a faster sale.
If you want to gain maximum exposure on the sale of your Central Ohio home, my team and I would love to work with you.
Sam Miller of REMAX Stars Realty 740-397-7800 SamMillerSells.com