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!