No matter if your home is in an area selling in a month or six months when it comes to online marketing there are some very simple little rules to get more eyes on your property. The more eyes, the more showings. The more showings the more offers. In hot markets maybe multiple offers!
What do I mean by strategic pricing?
Let’s go shopping. Let’s buy a gallon of gas. We know it’ll be $3.99 and 9/10ths. It makes us think it’s cheaper than $4.00. Now let’s buy a grapefruit. $0.99 each. Again less than the $1.00. These are marketing methods to attract our attention. Unless we go to another store the items don’t have any direct competition. The approach is to make it appear less expensive, and it is, just by such small margins. Yet it works, right?
Now let’s go house shopping. We already know that 90% or more home shoppers start researching online. The same marketing ideas get reproduced in real estate property pricing. For example a home that needs to be marketed around the $800,000 mark is priced at $799,999. It’s a buck less but because it starts with the number 7 it appears to be a lot less. There maybe other similar homes price at $799,900 or $795,000, even odd prices like $798,777. The property is not like gas or grapefruit, it has competition. There’s some undercutting going on to make the property stand out.
Here’s where that strategy fails.
Home buyers really don’t care at this early stage if one property is a dollar less, or even $150 less. Buyers search in price bands. Most likely they’ll be searching for this home in the price band of $750,000 to $800,000. Yet there may be buyers searching between $800,000 and $825,000. Every single time a buyer searches between $800,000 and $825,000 your home that starts with a number 7, will be missed, EVERY TIME.
So consider a little more strategy and price your home to appear in as many buyer searches as you can. You’ll get more eyes on your home.