Setting Your Selling Price: The Psychology of Numbers

Are your listings lounging around on the market for months while others seem to fly into escrow within weeks? Moving inventory quickly is the essence of a good real estate agent and the best way to do this is to get into the mindset of a buyer when setting a selling price.

What’s a buyer’s max price?

A potential buyer will usually start their search on a real estate agent’s website and one of the filter options will always be a “max price”. This means you need to have a good feel for not only what the home is worth, but what a buyer would be willing to pay for it and set the listing price just below that number.

Pick a number that looks good.

This is sales 101, if you want to list at $400k, go for $399,900. Buyers will not always associate it with $400k up front, which gives you the chance to hasten the sale by bringing them in to look at the home. The one time you might want to go for the full number is if you want to price a home at $1 million. At a seven figure price point, the hundred dollars less looks tacky and the psychological aspect of a “million dollar home” is attractive to buyers.

How about a price drop?

If all else fails, a small price drop will result in a “price reduced” symbol on a real estate website, making the home seem like a possible bargain. When a potential buyer sees this, they may be more likely to take a look at the listing, leading to a walkthrough, which can lead to an offer. For a motivated seller, this is an attractive option.

Keeping up with the newest real estate trends can be a hassle when you are out there moving houses. Properties Online makes it easy by condensing real estate agent tips onto a simple platform.

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