What strategy works? Research offers a few insights into setting the right asking price.
- Getting too precise means you won’t budge. Pricing research suggests that setting an exact asking price — such as $795,475 — sends the message to buyers that the price is less negotiable than, say, a round number like $800,000. Those using precise pricing show confidence in the price.
- The number nine can be a big influence. Pricing a property at $499,900 rather than $500,000 can subconsciously influence a home buyer. The home “seems way cheaper”. Even if the home winds up selling above the asking price, the buyer will feel like they got a great deal with the initial lower asking price. The goal is to make it stick in their head that you’re getting a bargain. “It’s the way our brain looks at numbers.”
- Going low doesn’t always mean a higher selling price. While setting a lower asking price may generate a frenzy of offers, it won’t necessarily translate into a higher sales price. It creates a havoc that doesn’t serve anyone well. The lower price won’t necessarily increase what a buyer will offer, since some buyers may compete in other ways, like paying in all cash or waiving the inspection to produce a quicker sale.
Tatyana Sturm – Real Estate Listing Specialist in the Southeast Aurora/Centennial/Parker area and 10 years experience in real estate with The Storck Team. Tatyana has helped hundreds of home sellers get their homes sold for the most amount of money in the least time in many markets over the last decade by offering professional photography, video, and staging.