When selling a house, the asking price you choose will help determine how much activity you get. Today I want to talk about the finer details of pricing that most people don’t think about. For years real estate followed the Ronco-matic style of pricing. Instead of $19.95 for a blender though, it was $239,900 for a house. Check out the following scenario:
A buyer doesn’t want to look at properties that need work. This buyer decides that he’s going to start his search with houses asking a minimum of $350,000. If you have decided to do Ronco-matic pricing on your home and are asking $349,900, then this buyer won’t see your house.
There’s a reason why all gas prices end in 9/10th of a cent. Yes $349,900 does sound less expensive than $350,000 but you have to keep in mind the way that buyers will search and computers are literal. If the asking price of your house is just $1 off of the search parameters the buyer sets up, you won’t get a chance at bat. No one is going to set up $349,900 as either the minimum or maximum sales price in their search.
There are some prices that are natural stopping points for buyers like $300,000, $325,000, $350,000, $357,000 etc. If your price point is very close to one of these sweet price spots, price your house to take advantage of computer searches. If your price is in between one of these points, then Ronco-matic pricing is fine.