When we list a home for sale in the Colorado Springs real estate market, one of the most important things that we do is make sure that we price it effectively.
Read Also: Colorado Springs Real Estate Answers: Why Didn't My House Sell? Part One: Price and
Selling Your Colorado Springs Home: The Importance of Proper Pricing from Day One
Part of pricing a home for sale effectively is the exact price of the home. Many people do not understand how important the exact price of a home really is.
For example, if we were going to list a home that would sell for between $298,000 and $303,000, we would list it for exactly $300,000.
Some agents would list that same home for $299,900 for the same reasons that gum is sold for $0.99 instead of a dollar. Psychologically, the home priced at $299,900 may seem cheaper than the one priced at $300,000 ... even though it is just a difference of $100, and could be totally negotiated in the offer.
However, in the Colorado Springs real estate market, this pricing strategy could actually do more harm than good.
See, most online home search websites offer pre-defined price ranges to search in. Most of these searches start and end at even numbers, like $250,000 - $300,000. This is also important when Colorado Springs real estate agents search the local Pikes Peak MLS. Most agents search in even number search ranges.
When a property is priced at $299,900 it will ALWAYS show up in searches UP TO $300,000, and it will ALWAYS be one of the most expensive homes in that price range.
When a home is priced at $300,000 it will ALSO always show up in all the searches up to $300,000 and will ALSO be one of the most expensive homes for sale in that search.
BUT Guess What?
The home priced at $300,000 will also show up in all searches that START at $300,000, and will always be one of the LEAST EXPENSIVE homes in those searches.
Pricing it RIGHT at the even number mark exposes our Colorado Springs listings to a larger pool of home buyers and their Real Estate Agents, and this gets our Seller clients more showings and a better chance at getting a good offer in a shorter amount of time.
Posted By: Mariana Wagner - Colorado Springs Real Estate Agent - Wagner iTeam
The Wagner iTeam is a power team of Keller Williams Clients' Choice Realty,
specializing in Colorado Springs Real Estate and Monument Real Estate.
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Advocates for Consumer Empowerment in Real Estate. Real Estate Brokers for Colorado Springs & Monument, Colorado. We love where we live & we love what we do. ColoradoSpringsRealEstateConnection.com
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Very interesting post Mariana. Most of us do not look at the flip side - the home will show as the lowest in the list.
I'm off to check our MLS - I really believe if we put in $299,900 our search will not pull $300,000. I wonder if this is a setting that can be changed.
Mariana - well pricing just keeps getting more complicated. And the psychological component is trickier given the market and range pricing (more than 50% of our MLS homes are variable range priced). I am finding that buyiners are looking at broader ranges since they know prices can be negotiated, and they are looking for the best deals.
Jeff
Hi Mariana - I've recently read a few things talking about just the way to price things. I'm just about convinced to talk to my sellers about this, instead of doing $399,900 let's do $400,000 so we fall into both searches that that number would come up for.
Thanks for the reinforcing your post gave me.
Ann
Great advice! I've been pricing that way for a while now. I forget the stats, but I've seen the actual numbers showing that your online views go up drastically when pricing this way.
Mariana~ That is an interesting fact that I had not really thought about before.
Hey Mariana,
Long time...unfortunately in my market we can do everything to price them exactly where they should be but if we don't sell them quick the value goes down before you can close....we have a tough time catching up to the market here but I am now really trying my best to keep them right there and it shows because those are the ones the buyer are buying.
Very good info Mariana, this pricing strategy definitely works and the home gets more exposure on the MLS too!