My New Outside Blog: Do You Have Your Listings Walmart Priced?

Do You Have Your Listings Walmart Priced?

 

Walmart - McKinney, Texas  

Attention Walmart shoppers, today in aisle 4, the home product section, we have our featured home on special today.  Like all of our homes, we have all our homes with a discount priced special value and we do price match for satisfaction.

There are many strategies regarding how to price position your home.  Many who with passion defend their method of the best visual price to give your home a standout edge.

One method is to price your home with odd numbers like - $429,957.  The theory is that as the properties in a price range are pulled up on a MLS search or website search like Realtor.com the odd numbers would make it stand out and not be grouped with others.  The thought is it would be isolated in the grouping and gain more immediate attention by the buyer/agent.

Another method is to price slightly above an even number as to give the seller a little more negotiating edge when an offer arrives so they can either appear to take off more on a counter offer or receive more at the end.  Example:  $326,500 - Goal was to hopefully obtain $320,000 - offer comes in at $315,000.  Seller counters $322,000 and buyer accepts.  Sometimes in a negotiation the parties decide to half their difference which with this type of pricing could give an edge.

Then my favorite is solid base foundation price positioning.  By pricing in an increment that is used as a common search criteria amount, you may capture not one but two buyer levels.  Example:  $350,000 even.  This would then be a home price point for $300,000 to $350,0000 and also $350,000 to $400,000.  If you were to price at $349,950 then the opportunity to be in the next level group has been lost.  Also, after you discuss this method to your clients, it might encourage them to price position at a better advantage.  Instead of pricing at $410,000 they just might be encouraged and see the value in your suggestion of $400,000.

Walmart pricing - using a visual amount that makes it appear that you are not asking as much- $399,999.  The thought is that it plays to the mindset that the home is priced in the $300,000 price range rather than $400,000.  There are firm believers that this is the best listing strategy.  I again challenge missed opportunity with not being in a price that search criteria hits so for $1.00 you miss another group of buyers.  Agents argue that when they search they always go below the range some to capture this price level.  Example - search set for $395,000 to $425,000.  However, other websites do not give this option as they are pre-set for the criteria levels.  If you use this method you just might lose out.

Advantageous price position of a home is a very key element that should be considered when taking a listing and deciding what to ask.  It just may give you the edge you need to obtain a quicker sell!

 

Comment balloon 17 commentsConnie Goodrich • April 18 2011 08:48AM

Comments

Connie...

Wow, this is an excellent primer on psychological pricing strategies. I'm bookmarking this and suggesting.

Posted by Richard Weisser, Richard Weisser Retired Real Estate Professional (Richard Weisser Realty) about 8 years ago

I ask my sellers if they would miss $100. the answer is always no. So I say "good lets do 274,900 instead of 275k". It always works.

Posted by Rob D. Shepherd, Principal Broker GRI, SRES (Windermere/lane county) about 8 years ago

Good Morning Connie,  Pricing is so interesting, you have some great points.  Belinda, my business partner and I always have a hard time with our pricing, she likes it even and I like a 9 in the price, so we rotate with who recommends the price, either 199900 or 200000.  Have a great day!

Posted by Will Hamm, "Where There's a Will, There's a Way!" (Hamm Homes) about 8 years ago

Connie - another awesome post.  I have also gone to trying to get my sellers to price at an even number rather than the $ ,9999999 which was the norm in the past.  Internet has changed everything and this is great advise - try to capture both price ranges.  

Posted by Barbara Hensley, Homes for Sale in Rockwall County, Texas (RE/MAX Properties) about 8 years ago

The '9' theory is that whatever the thousand(s) figure is, the '900' or '999' is a throwaway. It does set a mental stage for negotiation. I like the even number theory myself, but really, the key is being no more than 2.5% above the true market value. If you're much more than 3% above the market value you won't get enough showings to generate an offer.  I've gotten offers in the first 10 days on homes priced as $ xxx,400, $ xxx,600, $ xxx,750 - and practically any other variation you can devise.

Posted by Robert Smith, SRES, Search for Homes Brighton-Howell-SE Michigan (Preview Properties, PC - http://www.RealEstateMich.com) about 8 years ago

I like your thoughts, trying to get into 2 different search ranges is an excellent idea, because ultimately, the more exposure you get, the better chance you have of selling.

Posted by Jeffry Evans about 8 years ago

Great advice, and price is definitely the biggest criterion in selling a home, especially these days when things are selling below assessed value in almost every case!

Posted by Kristin Johnston - REALTOR®, Giving Back With Each Home Sold! (RE/MAX Realty Center ) about 8 years ago

I try to price my property aggressively from the beginning. Frankly with the ease of internet shopping I doubt the "range game" has much impact.

Posted by Doug Rogers, Your Alexandria Louisiana Agent (Bayou Properties) about 8 years ago

Appropriate pricing is key not only supported by the comparable sale, competitive with the active listings but also posturing the price to seize additional edge on appealing to varied buyers.  As you may have noted, I am not a fan of Walmart pricing as I feel it may keep the price for being a spring board to two different buyer levels.  Love your feedback and comments!

Richard - thanks so much for your comment and feeling it was a feature worthy post!

Rob- I feel one of the key things you referenced was a discussion with your client which I feel is very important.  Some clients definitely have an opinion on how they wish to position the home with a rounded price or 999 type.

Will - That is great that you have such a nice partnership of compromise.  Hate to take sides but I tend to agree with your partner's strategy.  But you know your market and what gives you the edge.

Barbara - thanks for the kind words and comments!

Robert - seems we agree with each other with our strategy of price points.

Jeffrey - there are so many schools of thoughts, and you have to consider your market and what works best for you and clients.  Thanks for the visit!!

Kristin - I don't even look at assessed value as the Assessors most likely have never been in the home and it is a mass valuation.  Our area actually is fairly decent in their price assessments.

Doug- The range game does help in regards to what a buyer seeks - a home from $200,000 to $250,000 and one from $250,000 to $300,000.  If you list it at $250,000 bingo you have it in two search criteria.

All the best to you all and many, many thanks for visiting my post and your wonderful input!

Posted by Connie Goodrich, CRS ABR (McKinney Realtor)Texas (Keller Williams Realty) about 8 years ago

Great post, I really like the psychology behind your groups.  And yes I can see where at some point I have been pricing in all of these categories--at different times of course.

Posted by Navona Hart, Selling the Best Properties in Central Virginia (Real Living Cornerstone) about 8 years ago

HI CONNIE!  The " 99" has never been a plus for me - either with clients or in Walmart.  So many different ways to price a home - no matter which a seller chooses - the best strategy is to price it right!

Posted by Gabrielle Kamahele Rhind, Broker/Owner (KGC Properties LLC, Tucson Property Management & Real Estate) about 8 years ago

Interesting thought; I have not heard it put quite like this. Like most, the closer you get to the real market value the better but sometimes sellers do hinder.

Posted by Teral McDowell (Referral Patners LLC) about 8 years ago

I used to price my listings in Houston with odd amounts not so that they would stand out necessarily but to make the buyers believe that we had really done our research on things that needed to be fixed and rather than fixing them we had simply adjusted the price. It worked more often than not.

Posted by Not a real person about 8 years ago

Russel said to come over here to say hello and introduce myself. Said you were a pretty nice lady and a "fine, fine Texan."

Posted by EC, JF, Double R and Zoey the Cool Cat (Russel Ray Photos) about 8 years ago

My marketing guru taught me the power of nines, and combining that with pricing the property right to begin with, the longest I’ve ever had a listing on the market was 27 days.

Posted by Jim Frimmer, Realtor & CDPE, Mission Valley specialist (HomeSmart Realty West) about 8 years ago

I think the last digit selection on pricing a home and over thinking it is just that over thinking. Just watch the RANGES you put it in. The last digit does not matter that much.

Posted by Gary Woltal, Assoc. Broker Realtor SFR Dallas Ft. Worth (Keller Williams Realty) almost 8 years ago

I think solid base foundation pricing is past its prime. Doesn't every site out there now let you actually put in whatever figures you want, so that you could search on something from 359,667 (what you paid for your first house) to $427,650 (what you've been approved at)?

Posted by Jim Frimmer, Realtor & CDPE, Mission Valley specialist (HomeSmart Realty West) almost 8 years ago

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