Is an iPad selling for R4,999 cheaper than selling one for R5,000? Not exactly.
For years, retailers have avoided selling products at rounded numbers because of the psychological effect it has on consumers.
R4,999 feels like a better deal than R5,000 even though you are only saving R1.
In real estate, the 999-strategy is almost always applied to sales. If you have your home valued at a certain price, let’s say R500,000, then knocking off R1,000 will make it seem like a steal, even though it won’t make much of a difference to the seller or the buyer.
Here are 5 more ways that you can cleverly price your home to sell:
#1 – Keep the herd mentality in mind
There are high stakes attached to real estate and it is obvious that the buyer does not want to be the only one interested in a house.
People are more attracted to something everyone wants. By pricing the property at a lower price, you could attract more people to it which in turn could attract even more people to it.
If you are under the gun to sell quickly, this would also be a good option.
#2 – Make sure your price gets found in real estate searches
Most buyers tell their agents that they are looking for a property under R500,000 in a certain area. Their real estate agent will then search for houses that are under R500,000.
So, if your house is listed as R510,000, it will be missed in the search results. Even though some agents take it upon themselves to include properties that are above the buyer’s price, this is not always the case.
Given the flexible nature of buying and selling homes, buyers should be informed about homes that are a little bit above their budget and who knows – this price might even be reduced.
#3 – Don’t get too creative with your asking price
Sometimes, sellers get too creative with their prices, pricing their homes at R577,982 or R588,888.
Such an abnormal number attracts attention for no good reason and buyers will often wonder why the number is so exact!
From there, they will get curious about the seller’s identity, intentions, etc. The seller should be kept in the background and this is the worst thing that could possibly happen.
Instead of attracting more buyers to the home, you might just repel them with your creative accounting.
#4 – Have a pricing contingency plan before putting your home on the market
Sometimes, sellers have high hopes for their homes and they want to ask top dollar for it, even if their agent doesn’t believe they’ll get it.
If this is the case, then it is a good idea to have a contingency plan before the ‘For Sale’ sign goes up in case the price isn’t offered. Plan B will ensure that there is hope for when everything that has been put on the table fails.
This will save time and prevents any surprises that might arise down the road.
#5 – Pricing is an ongoing discussion
The best thing that a seller can do is to listen carefully to the real estate agent’s pricing strategy.
It is their job to know what works and what doesn’t. And as with any strategy, be prepared to have an ongoing discussion with the agent as to what works and what doesn’t.
Pricing a home is not something that can be finalized within a day. It is an ongoing process that can change during the course of the home selling process.
If you are flexible and know how to react when the market changes, then you will get the best price for your home.