Price brackets for homes - question

jenswrensApril 22, 2009

Is it true that pricing your home on an even number, between two price brackets, gets you hits/showings from both search brackets or does it somehow limit you? If it does get hits from both, then why don't more people list that way?

For example, why do REAs list at $349,000 rather than $350,000 if listing at $350,000 gets hits from both the $300-350 search bracket as well as the $350-400 bracket? Or am I misunderstanding something?

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The 349,000 is the same as listing a item in a store for 1.99 instead of 2.00. It's a game they play. Mentally it's suppose to make you think you are getting a deal.

    Bookmark   April 22, 2009 at 7:08PM
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I think the REAs use the 349,000 as opposed to the 350,000 as a marketing in a store they price something for $6.99-it's really $7.00. Maybe they figure someone who is looking, will 'see' a cheaper house that way. I won't allow an agent to, say, use the $299,999. I just list at a $299,000. It just looks better to me. If I have a buyer, I'm not going to try to sneak an extra $1,000 out of him. I also think that if a person is looking realistically for a house, he will be open to $300-$400,000. Otherwise, he'll stick in the low low $300's and under. (I'm just using these numbers as theoretical numbers, BTW. Other price ranges may apply to your neck of the woods, but it's the same idea either way.)
I don't think i answered your question, but I had fun trying!

    Bookmark   April 22, 2009 at 7:09PM
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Plenty of people here have reported great results with listing at $350,000 rather then $349,000 for the very reason you stated: you get hits from both search brackets. Do a forum search for results.

What I find absurd is a listing of $304,000. It doesn't have the marketing "strategy" of $299,999 and it doesn't have the search opportunities of $300,000.

    Bookmark   April 22, 2009 at 8:03PM
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Yes I understand about the silly "psychologic" marketing ploy, which to me is silly because, duh, surely these days everyone knows about it, and if you recognize it you can ignore it.

What I'm asking is if I list at $350,000 will I really get hits from people who are looking at $350 and under and also from people who are looking at $350 - 450, say. It just doesn't make sense why REAs wouldn't use this to the seller's (and buyer's) advantage, if it's true.

And what exactly are the "price brackets" for realtor search engines? It seems they go in increments of $25,000. Is that right? I'd like to hear from some REAs on this, if possible.

The agents have suggested I list at about $10,000 more than one of those cut-offs. I'm wondering if it's worth it to just list lower at that "even" search engine number or go with the slightly higher price and possibly cut out some potential buyers who are shopping at $350 and below.

Maybe an ambiguous question, but...


    Bookmark   April 22, 2009 at 11:39PM
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I list a lot of new construction. One builder always just tallies up his costs and gives me that figure. It is usually something like 373,481. I always ask him to round it up so it looks better.


    Bookmark   April 23, 2009 at 6:50AM
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In my opinion the agents that price with the 999 figures are doing their clients a disservice, since it is true that a home listed at $299,900 will not come up in a search if someone is searching for homes from $300,000 and up. If you price at $300,000 you will come up in searches up to $300k and those starting at $300k. Old habits die hard though, and most agents that I know (I work in a RE office) still price with the 999's.

    Bookmark   April 23, 2009 at 12:01PM
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IMO, it does not matter where you price it as long as it is close to fair market value. A true buyer is going to do a search a little lower and a little higher than they think their budget is. They will see your home no matter what.

    Bookmark   December 9, 2013 at 6:55AM
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