When selling a home, the importance of strategic pricing cannot be overstated. Now more than ever before, a potential buyer is likely to search the internet long before picking up the phone or meeting an agent for an actual house hunting expedition.
Consider this: If your house is priced at $355,000, your house isn’t going to show up on someone’s $350,000 search. However, it will show up on a $375,000 maximum search, but near the bottom of that list because it will be behind all the $375,000 homes. Set at that price, it’s going to be hidden behind the higher price points and this lowers the probability of it’s being seen and ultimately sold. So, a listing price of $355,000 puts the seller at a disadvantage from the very start.
What then is the perfect price? When you list a house, you want to list it at the highest point of the lowest bracket; in other words, list at $350,000 or even $349,900; otherwise, you will miss that $350,000 buyer. By comparison, if you list at $409,900, you are going to miss the $400,000 buyers and possibly even then the $410,000 buyer.
Understanding the function of pricing brackets will inform your pricing and thereby widen your exposure. If your home is improperly priced and sub-optimally placed in the bracket on an internet search, you are going to miss a large number of prospective home buyers who are searching according to specific criteria. In fact, this rule applies in both directions: $205,000 and $210,000 are also poor pricing choices. You might as well go all the way up to $225,000 or stay right at $200,000. $205,000 is a dreadful place to be. I promise you, at the top of that $250,000 price bracket is exactly where you want to be.
Curious how your home should be priced? We can help!