So, YOU want to sell your Property?
The Psychology of Price
Is there psychology involved when pricing your property? YES, there is. Price is one of the main functions of marketing. A strategic market price will position your home effectively in the marketplace.
Many agents price homes with a 999 or 900 at the end. You will often see $499,999 or $499,900. I trust these agents have the best of intentions for their clients but many Realtors do not look at price as a function of marketing. Using .99 instead of 1.00 is a proven strategy in the walmart or target community BUT when someone is making the biggest purchase of their life (in most cases) they are NOT “fooled” by this strategy. In addition, everyone knows price is negotiable which means they will not likely pay what the property is listed for, especially in the Calgary market.
The reason this is a bad strategy is most Buyers or Agents begin their search online and that search is most likely on Realtor.ca. For example, if a buyer is looking between $400,000 and $425,000 for a home, and you priced yours at $399,999, that potential buyer will not see your property in their search results because of $1! My best advice is to price at $400,000, you will capture both sides of the search. Someone looking between $375,000 and $400,000 in addition to someone searching between $400,000 and $425,000 will find your property in their search.
Another BIG pricing consideration is the default $ search parameters or Min Price and Max Price. Specifically on Realtor.ca (yes, there are other sites but Realtor.ca is by FAR the biggest) the default increments are by $25k from $0-$475k. Once you reach $500k the default changes to $50k, for example the search is now from $500k Min to $550k Max, $25k increments is no longer a default option. You can of course type in an exact search price but let’s be realistic, very few people do this. You might ask “So what’s your point?” WELL, this means the default numbers are very powerful when looking to maximize exposure. If you price your home on one of these default increments you will dramatically increase the amount of searches your property shows up in. The general rule is the more people that see your property, the more likely it is to sell, and for a higher price!