Pricing Your Denver Home or Condo, It’s Not a Normal Retail Item
We’ve all been out shopping an noticed things are priced ending with .95 and .99, like $99.99. That’s called psychological pricing and it’s supposed to give the perception that you’re receiving a good value. OK, so, you saved a penny or even a dollar but at least you didn’t have to pass the threshold of $100 or $1000 and you can feel good about your bargain finding savvy (well, by the time you add taxes, you’ve passed it anyway!).
Don’t Exclude Yourself Or Make It Hard for Buyers to Find Your Home
This can have some unintended side effects in real estate pricing and examples are all over the place! Let’s say you price your Denver home at $295,000. Ok, we didn’t break the $300,000 barrier here but look at how you limit yourself and possible cut your search exposure in half.
A home buyer is online using a tool like our Denver Home MLS Search tool . When setting up their search, they’re more likely to select $250,00-$300,00 OR $300,000-$350,000 as their price range. Their real estate agent is going to do the exact same thing when searching the MLS (public MLS searches have all the data as the actual MLS but Realtors have more search fields to select from when searching for homes). I’m sure you see what’s happened. While you’re pretty much priced at $300,000, you’ve excluded your home or condo from being found in about half the searches when these home buyers really are looking in your price range.
What can you do about this? If your home or condo is being marketed and the pricing is close to one of these natural price “break points” (they tend to be in $25,000 increments), try to keep on this point until you need to make a significant move.
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