One of the most important factors in attracting buyers to a property listed for sale is its price. Check out these pricing strategies some sellers and real estate agents use to gain attention, and hopefully offers from home shoppers.
If a quick sale is a high priority it could be a smart plan to come in below the competition. Today’s buyers are looking for a bargain, and if your home has the best price in the area it’s likely to get the most interest. Be careful not to price the property so low that buyers or their agents assume there must be something significant wrong with the home. It’s also important not to set your rock-bottom, can’t accept any lower, number as the list price. You want to build in some wiggle room to come down during the negotiatons over the purchase price and any repairs that are requested following the inspection.
Some recent sellers have even found that a super low price resulted in a close to market final selling point as multiple interested buyers bid the price up. This can be a risky move however, as you could be responsible for real estate agent fees if a qualified buyer offering full price is turned down.
Pick A Round Number
In retail sales from groceries to cars to clothing you almost always see prices ending in .99, .97, or something similar. Retailers are relying on the perception that the .99 price is a bargain, or that $3.99 feels less than $4.00. This strategy is often seen in real estate as well, with purchase prices set at $199,000 or $349,000. Still – it may be smart to price a home with a round number, such as $200,000 or $350,000 rather than one just slightly below. The reason for this is that many home shoppers do much of their house hunting online, and most real estate websites allow users to filter the results based on price. If a prospective buyer does a search for homes between $200,000 and $250,000, they’ll miss one priced at $199,000. A home priced at $200,000 will show up in both searches for $150,000 – $200,000 homes and for properties listed for $200,000 and up.
Boost the value of your home by offering exciting incentives with the sale of the home. Bonuses such as new furnishings, a big screen tv, or a state of the art grill can add more in perceived value to the home than they cost you, and go a long way towards setting the home apart from others for sale.