Home Selling Tips – One Tip To Sell Your Home 18% Faster!


Home Selling Tips – One Tip To Sell Your Home 18% Faster!

You may be familiar with the pricing strategy in the retail environment where something is priced at $2.99 as opposed to $3.00.  It is a tried and true marketing tactic that has boosted sales in stores for decades.  However, if you attempt to use this sales tactic in selling your home, you may find that you get very different results.

In the retail world, pricing an item at $2.99 — rather than $3— will boost its sales. However, if you’re a seller using the same tactic when pricing your home, you may want to reconsider. When it comes to real estate, pricing at certain price points holds a clear advantage. Let’s dig into a recent study to see how and why.

Real Estate Is Different

Although “pricing on the 9’s” is commonplace in retail marketing, it can have the opposite effect when trying to sell your home.  Although you will still see that the majority of real estate listings are still priced at $299,999.  The difference is in how people search for real estate.

Pricing With Round Numbers

It has been proven that pricing your home with even numbers results in faster home sales.  Let’s say that you speak with your real estate agent and after reviewing the most recent home sales, come to the conclusion that your home should sell for $300,000.  Many agents will say “lets price this home at $299,000”, but that is statistically not the best route.  First of all, this is not a retail impulse buy where you are trying to make something appear to cost less.  When a buyer is purchasing a home, they have most likely already gotten pre-approved for a home purchase.  In that process, they have worked backwards from their personal financial situation, to what they can afford in a monthly note, to what that applies to in the price of a home.  This takes away the total price of the home and has a home buyer looking at a monthly note.  Although this may make a small difference in the ability to get your home sold for what you want, the big difference comes in how people search for homes on the internet.

Searching Homes on the Internet

According to the National Association of REALTORS, 97 percent of home buyers use the internet when looking for their next home.  That is a huge number!  That being said, it’s important to understand how real estate searches work.  When a potential home buyer searches for homes on the internet, they are utilizing the search functions of the major websites and local real estate agents.  You may have noticed, that when choosing a search criteria, you generally choose from $25,000 intervals.  That means to find your home on real estate websites, they would first put in a search criteria (including price) that would need to include your home’s price.

Pricing on the 9’s

If you price your $300,000 home at $299,999, your home will show up at the END of a property search where the max is $300,000.  That means the home buyer would put in a search criteria, let’s say from $275,000 to $300,000, they will go through potentially hundreds of real estate listings before seeing your home.   When a potential buyer is searching for homes, they are generally the most interested in the properties that are on the low end of their price range.  In the above instance, they would be looking at the homes priced at $275,000 and your home is at the very end of that search.  But what happens if a potential home buyer’s price range is from $300,000 to $325,000????  Where does your home show up in that list?  Yep…you guessed it…IT DOESN’T!

If you would price the home at $300,000 as opposed to $299,000, your home would show up in BOTH real estate searches…at the end of the $275,000 to $300,000 and at the VERY BEGINNING of the $300,000 to $325,000 search.  Not only will your home be seen by more potential buyers, it shows up first!

Statistics to Back It Up

homes selling fasterOne of the largest real estate brokers in the country did some research to verify this trick.

In reviewing the data from the MLS (Multiple Listing Service), Edina Realty looked at sales data for single family homes sold between 2005 and 2015.  The results backed up what many of the best real estate agents already knew.  Homes priced at even numbers sold on average 18 percent faster than homes listed “on the 9’s”.  They also found that when a home was priced at an even number, it showed up in 58 percent more searches than when priced on the 9’s.

Home Selling Tips

There are many tips to getting your home sold fast and for the highest fair market price.  Pricing your home on even numbers is an easy to use tip that has real results.

Ready To Sell?

If you are looking to sell your home and want to use every advantage possible, Contact Kathy Marshall today.

If you are in the beginning stages and just want to get your homes current value, use our Fast and Accurate Home Valuation tool.  It is statistically much more accurate than Zillow!

Click Here To Get Your Home’s Value!


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