IT'S ALL ABOUT PRICE!

Posted by V.K. [Mel] Melhado P.A. on Friday, August 1st, 2008 at 8:55am.

If you are contemplating selling your home in today’s strong seller’s market, you must price it correctly or it just will not sell period. In determing an asking price, it is important that the listing price be exact. Recent studies have shown that people are willing to pay more if that listing price is exact. For example rather than trying to sell your home for $450,000, you might list it at $449,475. The studies have shown that there is a psycological benefit when dealing with presise numbers. Oddly enough people tend to think that numbers that end in digits are actually smaller than those that end in zeros. Also an interesting factor is that when people do property searches on the internet, properties ending in digits will pop up more often then properties ending in zeros. There is also the philosophy of ending numbers in nines. Often you will see prices advertised ending in 99 like $24.99. Again this is a psycological ploy to entice the customer who they believe does not pay attention to the digits in the cents column. When you think of how you shop, it seems to make sense. The bottom line is you might want to consider this research when pricing your home because it is all about psycological pricing!