I usually post about peonies, donuts, and cozy coffee shops but I do have a day job and I’d be doing you a disservice if I didn’t share some real estate wisdom with you every once in a blue moon.
Well, I’ve got some news for you… you’ve been pricing your home wrong all along. But it’s not your fault.
For as long as people have been selling things, $19.99 has looked better than $20.00 right? This theory may hold true for a new t-shirt but can we agree that a new home is not a comparable purchase?
You’ve seen it happening all around you for ages. We price our homes just under a threshold number so as to be close to that number but “appear” to be a better value. You’re missing almost half of the market by pricing your home this way.
Stick with me here.
SEMAR (Southeastern Minnesota Association of Realtors) recently conducted a survey of homes listed on the MLS and compared homes priced with oddnumbers, (i.e., $149,900) versus homes priced with evennumbers, (i.e., $150,000).
The results are going to make you mad.
Homes listed at evennumbers got 24% more search hits and sold 36% faster than homes priced with odd numbers.
Let’s say you’re putting your home on the market. You’ve got a great yard, 3 car garage, and 4 bedrooms on one level. You’d like to get as close to $300,000 as possible but buyers are going to perceive $299,900 as a better value. So you list at $299,900. Jane & Jon are searching for a new home. They don’t want to spend more than $350,000 but they need 4 bedrooms and a large lot so they search for homes between $300,000 & $350,000. Your house is perfect for them. But they never found it because they weren’t searching in a price range of $299,900-$349,900. Stop making it harder for buyers to find you.
Do I need to go on? Didn’t think so.
Note: I understand that most agents will give some wiggle room in this search range, (if they’re conducting the search) but buyers researching on their own and sending their agents homes they want to look at is highly typical. And you cannot ignore these numbers.