by Chuck Roper
31. October 2016 06:41
A recent study published by the Journal of Housing Research concluded the best technique for pricing a home is setting the asking price just below a round number. The study went on to say that this strategy of “just below” pricing yielded a selling price 2.5 to 3 percent higher compared with a “rounded price.” The example given is a home listed at $199,000 yielded a sale price $5,000 to $6,000 higher than one listed for $200,000. The study was conducted among 1,000 buyers in Virginia considering a pool of 370,000 listings.
Do you agree or disagree? Some believe this is old school thinking. “We don’t price homes like cans of soup on the grocery shelf, commented a Realtor. Others believe this is a good strategy because home buyers are influenced by a lower first digit. What is your experience?
-Janet
Principal
Janet McAfee Real Estate