OK, your turn...what do you think? Which pricing strategy do you prefer?
Like most people, I used to think that $499,900 was naturally the best choice. After all, it's what all the retailers do, right? And besides, $9.99 always sounds better than $10.
Well, a couple of years ago I attended a training by a top notch realtor, Bruce Hardie in Spokane, WA. It was at this training that I was first introduced to the idea of pricing right on the money...on flat numbers as opposed to coming in right below the obvious.
Here's the reason...if a buyer is searching for homes between $200,000 - $250,000 and my home is listed at $249,900 the buyer will find me.
But...if I'm priced at $250,000 then all of the buyers searching between $200,000 - $250,000 will find me but even better....all of the buyers searching from $250,000 - $500,000 will also find me! Groovy! I've just doubled my exposure!!!
We came back from the training and started implementing this pricing strategy immediately. Our average market time has gone down since then (for our listings sold). Can I attribute that specifically to the pricing change? Not necessarily, but I'm sure it didn't hurt.
Is this something you've ever tried doing?
Please share your thoughts...