Comments on: The Persuasive Psychology Behind Your Listing Price http://www.homestomper.com/the-persuasive-psychology-behind-your-listing-price/ Guerrilla Real Estate Marketing Tips from HomeStomper Wed, 18 Jan 2012 17:52:15 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Mark Eckenrode http://www.homestomper.com/the-persuasive-psychology-behind-your-listing-price/comment-page-1/#comment-225 Mark Eckenrode Mon, 21 Jul 2008 06:16:02 +0000 http://www.homestomper.com/?p=129#comment-225 <a href='#comment-219' rel="nofollow">@Brad Nix</a> - very on point with your comment, brad, and it makes sense. however, precise pricing isn't just about getting near asking price. in the study we're told that the homes priced more precisely also sold faster while round numbered homes sat on the market much longer... an important point. so, through precise pricing you may reduce the total number of unique views but those that do view the home become more inclined to "agree" with the price and mentally move towards ownership. obviously, it also comes down to how you like to market... maximum exposure versus more "qualified" exposure. consider this another tactic to add to your arsenal because at the end of the day what matters is if it sold. @Brad Nix – very on point with your comment, brad, and it makes sense. however, precise pricing isn’t just about getting near asking price. in the study we’re told that the homes priced more precisely also sold faster while round numbered homes sat on the market much longer… an important point.

so, through precise pricing you may reduce the total number of unique views but those that do view the home become more inclined to “agree” with the price and mentally move towards ownership.

obviously, it also comes down to how you like to market… maximum exposure versus more “qualified” exposure.

consider this another tactic to add to your arsenal because at the end of the day what matters is if it sold.

]]> By: Brad Nix http://www.homestomper.com/the-persuasive-psychology-behind-your-listing-price/comment-page-1/#comment-219 Brad Nix Sun, 20 Jul 2008 17:05:46 +0000 http://www.homestomper.com/?p=129#comment-219 Mark, I enjoyed your comment over at AG. I am so jealous you got to experience the punk scene first-hand (No Doubt played your backyard - awesome!). I also would like to see you share the Guerilla Marketing book with your reader here, in addition to your Inman audience. However, I disagree with the pricing arguments in this post. We all know that buyers determine value by what they are willing to pay for real estate at a point in time. As a listing agent, I think it is your duty to expose the property to as many potential buyers as possible. It is not your duty to get within a certain % of your list price, buyers and sellers will determine the sales price and not listing agents. Stick with me... Let's assume in the example above that the house listed for $494,500 actually sells for $493,000 (really close the list price). I still contend that listing agents prepare their sellers for the expected sales price value ($493,000). But they would do much better service to their seller if they listed the property at $500,000. Why list at $500,000 if you know the value to be $493,000ish> Because your job as a listing agent is to expose the property to as many potential buyers as possible. And I have never met a buyer (or buyer's agent) who searches for real estate in $5,000 increments. By listing the property at $494,500 think of all the $500,000 to $525,000 buyer searches that will MISS your listing. By pricing real estate on the whole number (and in $25,000 increments), you expose the property to a much wider buyer audience. In this example, the seller would capture buyers searching $475,000 to $500,000 and also the $500,00 to $525,000. In essence, you could possibly double the exposure by pricing $5,500 higher than you know it will sell for. Negotiating 1% to 1.5% of a list price is well worth exposing your property to more potential buyers, IMO. Thoughts? Mark, I enjoyed your comment over at AG. I am so jealous you got to experience the punk scene first-hand (No Doubt played your backyard – awesome!). I also would like to see you share the Guerilla Marketing book with your reader here, in addition to your Inman audience.

However, I disagree with the pricing arguments in this post. We all know that buyers determine value by what they are willing to pay for real estate at a point in time. As a listing agent, I think it is your duty to expose the property to as many potential buyers as possible. It is not your duty to get within a certain % of your list price, buyers and sellers will determine the sales price and not listing agents. Stick with me…

Let’s assume in the example above that the house listed for $494,500 actually sells for $493,000 (really close the list price). I still contend that listing agents prepare their sellers for the expected sales price value ($493,000). But they would do much better service to their seller if they listed the property at $500,000.

Why list at $500,000 if you know the value to be $493,000ish> Because your job as a listing agent is to expose the property to as many potential buyers as possible. And I have never met a buyer (or buyer’s agent) who searches for real estate in $5,000 increments. By listing the property at $494,500 think of all the $500,000 to $525,000 buyer searches that will MISS your listing. By pricing real estate on the whole number (and in $25,000 increments), you expose the property to a much wider buyer audience.

In this example, the seller would capture buyers searching $475,000 to $500,000 and also the $500,00 to $525,000. In essence, you could possibly double the exposure by pricing $5,500 higher than you know it will sell for. Negotiating 1% to 1.5% of a list price is well worth exposing your property to more potential buyers, IMO.

Thoughts?

]]>