6 pricing strategies you may not have considered
09/21/2015 | Author: Editorial Staff
Did you know that you may be able to attract more buyers to your listings just by tweaking the sales price? Several studies have found that consumer behavior may be influenced by certain pricing strategies.
These tips won’t replace the comparative market analysis you provide to clients, but they can complement it to help your clients determine the best sales price and help you advertise the property.
- Avoid mentioning currency. Dollar signs and the word dollar reduce consumer spending, so you may want to limit the use of both.
- Create context. If possible, compare your listing to a higher-priced property nearby to show buyers your listing’s value and affordability.
- Keep the math simple. Use whole numbers that are easy to work with and avoid decimal places, for example $240,000 instead of $237,900.00.
- Know the pros and cons of unique asking prices. An unusual price, like $451,613, will get buyers’ attention, but it can give the impression that the seller is asking for the property’s exact value and is unlikely to negotiate much.
- Consider your use of nines. Prices ending with nine attract more buyers, but be mindful of price ranges buyers select when searching for properties online—a property listed for $249,999 won’t be included in a search for $250,000-$275,000.
- Use the right font size for prices. Consumers see a larger font and assume it’s a larger price. If you advertise a price reduction, either avoid mentioning the original price or keep the prices the same font size.
Check out the article “How do buyers perceive sales prices?” in the July 2015 issue of Texas REALTOR® magazine for more explanation of each strategy.
The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.
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