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Why List with the #8?

By Tina Merritt

Real Estate Agent with Nest Realty

October 05, 2008 04:55 AM

eight How do you price your properties? Do you carefully look at pricing as a strategic way to place your property?

I recently sent a market analysis to a seller with a recommend price of $224,800 for his property. He then called me and asked "Why not list the property at $225,000"? Well, here are the reasons why:

1. Listing the property at $225,000 could be a HUGE $1 mistake! Why? Well, because of the property search page on the many sites on which we syndicate our listings. On some sites, if a buyer enters, "under $225,000" for their price range, properties priced at $224,999 will show up, but those priced at $225,000 will not.

2. Look at the "active" listings you are competing with in the MLS. They are ALL priced at $225,000 and $224,900. By pricing the property at $224,800, we are placing the property "under" all of the others and thus, make ourselves look like the better deal on paper.

3. The #8 is good Feng Shui - and in this market, we need all the help we can get!

Pricing a property shouldn't be just some arbitrary number, remember $1 can make a huge difference!

Tina in Virginia

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Charlottesville Solutions

Charlottesville Solutions - Charlottesville, VA

Now I like that 8 idea. I have an associate, who like odd numbers like. 249,726 or 635,919

Not sure of that logic but I guess it gets some attention

Oct 05, 2008 07:13 AM

marti garaughty

garaughty.com - Montreal, QC

a highly caffeinated creative type...

hi Tina, what a clever, simple concept that anyone can use. It seems so obvious once it's pointed out, glad you brought it up, what a dramatic difference $1 can make!

Oct 05, 2008 07:42 AM

Troy Erickson AZ Realtor (602) 295-6807

HomeSmart - Chandler, AZ

Your Chandler, Ahwatukee, and East Valley Realtor

I always like to try and choose a price that makes sense compared to the other listings. For example, if we are looking at comps, and the list price ranges between $225k and $235k, I will always want to try and be the first on the list and make my listing $225k, or at least have it be one of the first 10 listings that come up.

If the comps range from $227k and $233k, I will want to price my listing at $226,900 or $226,899. That way, it is the lowest in the range of comps, and still will be fairly low when buyers look at the range of $225k to $250k.

Of course, pricing also depends on how quickly the seller needs to sell.

Oct 05, 2008 09:32 AM

Jerry Becker

Jerry Becker and Associates - Littleton, CO

Littleton, Colorado

I disagree. It may depend on your home search engine operates. In ours, if we specify homes from $215-$225K, it will give us those homes, including the one at $225K. We all got used to doing the price right under the rounded number because it sounded better, but here's what one trainer told me. Whe someone is searching for a range and as in this case, if $225 was their bottom, it would pull in that listing. If you priced it at $224,999, they wouldn't see it. It's your reasoning in reverse.

Oct 05, 2008 10:56 AM

Tina Merritt

Nest Realty - Blacksburg, VA

Virginia Real Estate

Jerry - good point; however, I'm not just talking about the MLS, I'm talking about the search engines buyers use to find properties. Most buyers are more likely to search toward the top of their price ranbge rather than the bottom so I think I'd rather hit the top tier rather than the bottom.

Troy - great pricing strategies!

Marti - as usual, thank you so much for reading and commenting!

Charles - I'm sure the Charlottesville area could use some pricing with 8's!

Marlene - the Chinese view the #8 as a lucky #. Try Googling it and you will see lots of explanations for why. Thousands of people in China married this year on 8/8/08.

Karen - what a novel idea! A great way to "connect" with your market!

Paula - yes, it does impact my showings. When there are 10 homes in a neighborhood priced at $224,900 and you come in at $224,800, it almost guarantees that you will be one of the 3-4 an agent shows in the neighborhood.

Justin - I had no idea that was a lucky # in the Jewish faith - I'll have to keep that in mind.

Michele, Richard - depends on the site. At $225K, some sites will take you out of the $200-$225 price range because their program only returns properties up to $225K, not including $225K.

Evelyn - some agents who specialize in a certain neighborhood will price all of their listings at an odd # so they are easier to spot. Great point.

Greg, Paul, Art, Angelia, Heath - thank you for reading and commenting!

Lanette - yes, I agree too!

Anna - it sure does, doesn't it!

Shane - it doesn't really make a difference - it's the positioning that is important.

Oct 05, 2008 11:22 AM

Mike & Cindy Jones

Florida Homes Realty & Mortgage - Jacksonville, FL

Real Estate - (904) 874-0422 - Jacksonville, Fl

Great post! Something I will take to heart as most of my listings are priced like many others at

$something,900

I agree using the "8" is a great tool to get the property at the top of most searches. Anything that will set my listings apart from others is worth it's "placement" in gold!

Oct 05, 2008 11:45 AM

Tina Merritt

Nest Realty - Blacksburg, VA

Virginia Real Estate

Wow Marty! Thank you so much for the Art of Marketing You feature! You rock!

Tina in Virginia

Oct 05, 2008 11:19 PM

Laura Sargent

Carolina One Real Estate - Mount Pleasant, SC

Everyone has a favorite number. My is 27...I've been thinking about using it with pricing. It may seem odd or annoying but standing out is important.

So instead of 499,800 - I'm thinking 499,827. May be silly or a bad idea - but I completely agree with your 8 vs. 9 rule.

Oct 05, 2008 11:52 PM

Charlie Harden

Columbia, SC

Tina, there was a Realtor in our area that priced with the last 3 numbers the same each time so other Realtors would remember it was his listing. I don't know about all of that. How about the number 7? They say that is the perfect number according to the bible. At any rate, I like your idea.

Oct 06, 2008 01:43 AM

Sonja Adams

Keller Williams Realty - Purcellville, VA

I've never heard of the #8 being good feng shui before...I have priced a home at 224,999 or 224,900 to get under that 225,000 number though....

Oct 06, 2008 03:26 AM

Debbie Malone

Londeree's Real Estate & Property Management - Lynchburg, VA

From Lynchburg To The Lake (434) 546-0369

Tina, I don't know much about feng shui but the pricing strategy makes sense. Trying to get a seller to lower the price, we need all the help we can get!

Oct 07, 2008 04:11 PM

Anonymous

Christine McInerney

I have done that exact same thing with my pricing. I think it makes perfect sense- afterall looking cheaper on paper and showing up first in the searches is of extreme importance.

Oct 09, 2008 03:15 AM

#28

Trey Thurmond

BCR Realtors - College Station, TX

College Station , Texas Homes

I like this.

We have also used the odd # technique that creates curiosity and gives opportunity. Use your birthday or the sellers'. Be careful though. Don't underprice your seller inadvertantly.

So March 23, might be $189,323

People cannot help themselves wondering why the odd number?

Oct 09, 2008 03:18 AM

Erik Hitzelberger

RE/MAX Alliance - Louisville REALTOR-Luxury Homes - Louisville, KY

Louisville - Middletown Real Estate

Tina - I agree with Michelle. Realtor, Zillow, Trulia, RE/MAX, and my local mls feeds all include the break price. If you price at $199,800, you are giving up on every buyer that searches from $200,000 to $225,000. In addition to the quantity, these are better quality buyers as you are working at the bottom of their price range not the top. At 210 it doesn't matter, at 225 I think you have to hit the break.

Oct 09, 2008 03:54 AM

Military Relocation Specialists

Long and Foster Realtors - Virginia Beach, VA

I like using the #8 as well! an ancient secret I learnt from someone great! I think it helps your listing stand out amongst a bunch of homes all listed at 249,000 or 249,995 0r 249,999 or 250k-- Be different and unique- it does help you stand out from the crowd.

Oct 10, 2008 07:07 AM

Michelle Minch

Moving Mountains Design Home Staging, Pasadena, CA - Los Angeles, CA

Home Staging Los Angeles and Orange County, CA

I always make sure I have an 8 in the price of all my staging bids, even if it means I am getting a few dollars less. It seems to work.

The Chinese pictogram for the number 8 is very similar to the pictogram for prosperity. The number 4 resemble the pictogram for death.

Oct 12, 2008 03:43 AM

Cecily Parks

iMove Group, Knipe Realty NW, Inc. - Salem, OR

A friend of mine always list with 559. For example $399,559. He say it works for him Maybe I'll try the 8 and see how that goes. Thanks.

Oct 12, 2008 03:48 AM

Adam Chinn

Berkshire Hathaway Realty - Daly City, CA

I'm in the SF Bay Area, the 8's are everywhere. You would lose the buyers looking in the $225,000-$250,000.

Oct 12, 2008 07:25 AM

Deb Jobin

RE / MAX River's Edge - Bristol, RI

Award-Winning Realtor

I think I will drop the #9 on my next listing and replace it with an #8. Great idea

Oct 13, 2008 07:41 AM

Kathy Batterton

RE/MAX Infinity CDPE, E-PRO, GRI - Pace, FL

TeamWork makes the Dream Work!

I follow the $250K crowd. I want it to show up as highest on one search and lowest on the next. However, I only do that when the price is right at that big cutoff. I think I'll try the "8" on other listings to see how that works. Can't hurt!

Oct 14, 2008 01:44 AM