by Stuart Neal
on Friday, April 5th, 2019 at 9:56am.
We are often asked by our home selling clients for guidance on pricing their home for sale. And most sellers think we are going to advise them to select a price that ends with a 9. Why? Known as ‘odd’ or ‘charm’ pricing the reason that many people think an odd price point could be best is based on years of conditioning and experience. I believe that a newspaper man came up with the idea that if he charged 9 cents not 10 cents for his paper he would sell more. And this belief has continued for decades. In essence it’s a trick and most people don’t appreciate it.
New research is emerging that proves this theory wrong. Why?
An even number conveys value, trust and transparency
According to Mark Anderson of Business.com people have to think harder if you show them an odd price. Whereas an even number makes it easy to understand how much an item actually costs. The next time you go into a higher end restaurant or clothing store check out their price strategy. Chances are that the prices are even.
Websites work in even numbers
Your buyer is going to be sorting and sifting through homes for sale listings on the website of their choice. That website will present homes for sale in groups. For example: $350,000 to $400,000. $400,000 to $425,000 etc. If you price intelligently, you can select the best bridge price or semi bridge price and appear in more than one search group. For example, pricing your home for sale at $450,000 would put you in the $400,000 to $450,000 search and the $450,000 to $500,000 search. This is known as a bridge price.
If you price at $779,900 your home only appears in one search.
And one last thought. There is MUCH more to selling a home than picking a price. We identify 8 key components to success.
Want more information about our discount and flat fee home selling programs? Please feel free to call our broker owner Stuart Neal at: 780-760-2014 or visit our home sellers page www.FlatFeeRealtyAdvisors.ca