House Talk with Silvia Dukes

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$199,999.99 - How to Miss Your Perfect Buyer by 1 Cent!

Pricing your Spring Hill home for sale is an important part of marketing.

Without the right price, all advertising and promotion could result in nothing, not to mention all the efforts you as the homeowner go through when putting your home on the market.

Recently, while looking through homes for sale that are listed in our local multiple listing service, I noticed that some homes are priced at odd numbers.

And yes, there were those that were just one dollar - and in the extreme just one penny - below the next price point marker. 

This may be a great pricing strategy for supermarket goods but most homebuyers will see right through this and recognize it as a pricing gimmick. After all, for all practical purposes the home is priced at $200,000.

Sometimes home sellers are afraid of going to that slightly higher price and come up with this pricing idea on their own. And then there are some real estate agents who argue that an odd price like this will make your home stand out from the rest. 

As your marketing Realtor, I would advise you of the ramifications an odd price like this could have and yes, I would advice against this strategy and here is why:

Buyers search for homes online and in most search portals the price ranges are in even increments such as $10,000, $20,000, or more increments. 

That means, for a buyer who is looking for a home in the up to $200,000 range, your home would show up in the search results but at the very highest end. 

Spring Hill Florida Realtor Silvia DukesLet's think about the buyer who is starting to search at the $200,000 range. This could be your perfect buyer and you would be missing him by a measely one cent! If that happens, this one cent could have cost you thousands. 

On the other hand, priced just one penny more at $200,000, your home would be at the most affordable range for this buyer - a very compelling reason to schedule a showing that could potentially result in  an offer. 

There are other considerations that go into pricing your home for sale correctly. 

If you are interested in finding out more about marketing your home for sale and how to go from "for sale" to "sold" in Spring Hill, Hudson, Hernando Beach, or Brooksville, Florida, please call me at 352-584-7441 or contact me by email

 

   

 

 For more information about Hernando County Homes and Land for sale including Spring Hill and the communities of Timber Pines, Glen Lakes Golf and Country Club, Silverthorn, and Hernando Beach , please call or visit my website!

Let me help you find Your Place in the Sun!

 

Silvia Dukes PA, Broker Associate

Tropic Shores Realty, 3441 Deltona Blvd, Spring Hill, FL 34606

Phone: 352-584-7441    Email: SilviaDFL@yahoo.com   Website:  www.SilviaDukes.com

 

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Copyright (c) Silvia Dukes 2006-2017.  All Rights Reserved. 

Listing and real estate market information is current as of the date it was posted but subject to changes.

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Comments

marti garaughty, abstract art, graphic design, marketing, WordPress consultant

Posted by marti garaughty, a highly caffeinated creative type... (garaughty.com) 11 months ago

Thank you Marti!  I appreciate the group feature!  

Posted by Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES, Florida Waterfront and Country Club Living (Tropic Shores Realty - Ich spreche Deutsch!) 11 months ago

This is very good reading for prospective home sellers.

They will be in very good hands when they select you as their listing agent.

Posted by Roy Kelley, Roy and Dolores Kelley Photographs (Realty Group Referrals) 11 months ago

Hello Silvia, I wonder sometimes why some  agents price homes at $305,000 instead of $300,000 but to each their own.

 

Posted by Will Hamm, "Where There's a Will, There's a Way!" (Hamm Homes) 11 months ago

Silvia, great tips and right on target.  Some sellers don't understand what an impact the right pricing makes!  Have a great weekend.

Posted by Matthew Klinowski, PA, Golf Community Real Estate Specialist (Downing-Frye) 11 months ago

I think a lot of times people get caught up in the "retail" side of the marketing and want things to appear nice, neat and like a deal for they buyer. On the flip side they neglect they are shunning the next price point with their pricing strategies and only swimming in one pool rather than two.

Posted by J.R. Schloemer, CRS (Kentucky Select Properties) 11 months ago

Good afternoon Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES ,

The right pricing is so important for sellers. People search in $50K increments and by listing a house at $449,999 or $499,999 you just knocked out a buyer looking for a home from $450K-$500K or $500K - $550K. The law of the nines works well for $409,999, $419,999, $429,999 or $439,999..buyers will pick those up when searching from $400,000 to $450,000. Great post!! Something agents and sellers need to consider when pricing.

Posted by Dorie Dillard CRS GRI ABR, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.750.6899) 11 months ago

Roy Kelley  thank you, I appreciate the recommendation!
Will Hamm To a point, I can understand a $5K difference especially in lower priced markets.

Matthew Klinowski thank you and same to you. 

 

Posted by Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES, Florida Waterfront and Country Club Living (Tropic Shores Realty - Ich spreche Deutsch!) 11 months ago

J.R. Schloemer, CRS exactly, why not catch two price brackets rather than being in just one. 

Dorie Dillard thank you, I agree, in the mid ranges there is a little more room for play. 

Posted by Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES, Florida Waterfront and Country Club Living (Tropic Shores Realty - Ich spreche Deutsch!) 11 months ago

Great point, Silvia.  It's all in being strategic to capture the most buyer prospects.

Posted by Carol Williams, "Customized Mentoring & Marketing Services" (U.S.: I specialize in helping agents who have been in the business 2 years or less create a thriving business.) 11 months ago

Yes, agree with you completely. When I do MLS searches, I put it in a variety of ways to ensure I don't miss any of those _999,999's. :) 

Posted by Debb Janes EcoBroker and Bernie Stea JD, REALTORS® in Clark County, WA (ViewHomes of Clark County - Nature As Neighbors) 11 months ago

Silvia you you said makes a lot of sense.  Gimmicks can some times prove to be costly.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) 11 months ago

While all markets differ, I agree with your marketing strategy and with Dorie Dillard comment.  

In my market, buyers know they need to pay more than list price. In many cases, they need to pay much more than list and market comps. This makes pricing even more challenging for agents and buyers. 

Posted by Kathleen Daniels, San Jose Homes for Sale-Probate & Trust Specialist (KD Realty - 408.972.1822) 11 months ago

I have heard this strategy explained at conferences and it makes lots of sense. Thanks for sharing it, Silvia.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) 11 months ago

I agree - I always encourage sellers to list at the increments - I had one willing to list at $455 and I said - lets do $450 to get those buyers just under our list price - same idea going up and coming down

Posted by Lise Howe, Assoc. Broker and Attorney Licensed in DC, MD, VA, (Keller Williams Capital Properties) 11 months ago

Great points here Silvia.  This also brings up how valuable a good buyer's agent is -- a buyer's agent should know to look slightly above/below what the client asks for, to avoid missing out on a home simply based on pricing "Strategy"

Posted by John Meussner, #MortgageMadeEasy Walnut Creek, CA 484-680-4852 (Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA,) 11 months ago

There are many paths to successful marketing and some not known too

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) 11 months ago

Not uncommon for me to search  200-250.  I would Miss this completely

Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) 11 months ago

Congratulations on the feature. Well said Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES . I see this being domne often here to and i like to have this conversation with my sellers why it is important to price the home right from the start

Posted by Scott Godzyk, One of Manchester NH's Leading Agents (Godzyk Real Estate Services) 11 months ago

Reminds me, Silvia ... a penny saved is a penny earned.

Posted by Raymond Denton, Simple Man (Academy Mortgage Corporation) 11 months ago

And how ridiculous does it sound when you have to say that every time somebody asks the price?  You know you're just going to say $200,000 anyway.

Posted by Georgie Hunter R(S) 58089, Maui Real Estate sales and lifestyle info (Hawai'i Life Real Estate Brokers) 11 months ago

It would be a shame to lose half your potential buyers over one penny. 

Posted by Dana Hollish Hill, Lead Associate Broker (Hollish Hill Group, Keller William Capital Properties) 11 months ago

Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES 
Great explanation. You covered so many good pricing points. There is one agent in Atlanta who use specific ending numbers in each Listing: $xxx,813. Wonder what that relates to? All the best - Lynn

Posted by Lynn B. Friedman, Concierge Service for Our Atlanta Sellers & Buyers (Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ...) 11 months ago

Hi Silvia

You’ve made some excellent points about pricing for searches that will be most effective. Of course it goes without saying that the pricing for the market needs to be on target, too!

Jef

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (Solutions Real Estate ) 11 months ago

A cent! That is a weird phenomenon, But I wouldn’t say it shocks me. Nothing is that shocking too much anymore.

Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) 11 months ago

She does make a good case for effectiveness, Jeff. I would say so you don’t do too badly yourself Jeff Dowler

Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) 11 months ago

Debe Maxwell, CRS just touched on the topic as well in a post about disagreement.  I'm clearly in the same camp as you both with giving a house as much exposure as possible with a great even price. 

Posted by Tammy Lankford,, Broker GA Lake Sinclair/Eatonton/Milledgeville (Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668) 11 months ago

Pricing is an art form that many miss the mark on Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES !

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) 11 months ago

As a practice Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES, when I do my searches, I always go $5,000 over my clients top price. Some people list their houses for some really goofy amounts like $201,500. If the search goes up only to $200,000; potential buyers will never see this listing.

Posted by Paul S. Henderson, REALTOR®, CRS, Tacoma Washington Agent/Broker & Market Authority! (RE/MAX Northwest.) 11 months ago
I am not a fan of "creative" pricing. It gives the appearance of trying to trick the consumer and - as you point out - can result in you missing the perfect buyer. Have a great week!
Posted by Nathan Gesner, Broker / Property Manager (American West Realty and Management) 11 months ago

Yes, they do see though that gimic quickly. I believe most customers just want good information. Details about the home and many good quality pictures.

 

Posted by Walt Fish, Upper Michigan's Most Experienced Home Inspector (Bay Area Home Inspection, LLC) 11 months ago

Yes, this is such a dumb and in fact very foolish way to price your home.  It's a good way to exclude potential buyers, and as you pointed out, most likely your best buyers.

Posted by Debbie Gartner, The Flooring Girl & Blog Stylist -Dynamo Marketers (The Flooring Girl) 11 months ago

Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES I love this and have been sharing retail vs real estate pricing for years, even wrote a couple blog posts here a few years back.

The agents that price the homes with the retail mindset are doing their clients a grave disservice, I even did a study 10 years ago on which of these strategies gets a higher price in the end, our job is to get the most possible buyers to see the property, why cut that number in half, especially when it is the lower half of the buyer pool!

Very nice post.

Posted by John Marshall - FORE!, Specializing in Golf Course Properties (The K Company Realty) 11 months ago

Good morning Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES - that is certainly good to know.  That is a little different than retail.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) 11 months ago

I agree.  I always bring this up to sellers.

Here's another reason to use round numbers.  A study showed that when people see prices in round numbers their decision is more emotional.  A more specific price gets them to use more of their rational mind and they start analyzing more whether it's a good deal or not.  I would think that sellers would want buyers making emotional decisions so a round price might be better.  But I'm sure there are other studies that might dispute this.

Posted by Tim Maitski, Truth, Excellence and a Good Deal (Atlanta Communities Real Estate Brokerage) 11 months ago

Sylvia, this mistake is made very often by sellers and listing agents. It is old school marketing and needs to go away :)

Posted by Jeffrey DiMuria 321.223.6253 Waves Realty, Florida Space Coast Homes (Waves Realty) 11 months ago

You are on point Sylvia. Happy new year.

Posted by Lana Robbins Realtor ® Licensed Real Estate Broker, Licensed in Florida and Washington (Aloha Kai Real Estate) 11 months ago

Well done, Sylvia- You're selling a house, not a car or clothing in a retail store. 

Posted by Kathy Streib, Home Stager - Palm Beach County,FL -561-914-6224 (Room Service Home Staging) 11 months ago

In addition - one of my seller prospecting letters mentions the fact that people search in ranges. One might be searching $175,000 - $200,000 while another is searching $200,000 - $225,000. Keeping your price right on that dividing mark will get you see by both.

Posted by Marte Cliff, Your real estate writer (Marte Cliff Copywriting) 11 months ago

This is such a good post and well explained. Nothing to add, other than that you nailed it. Well done.

Posted by Nick & Trudy Vandekar, 610-203-4543, Tredyffrin Easttown Realtors, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400) 11 months ago

Silvia, many times my sellers say to go that one cent lower, but explain you are missing the market.   GREAT post.

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373) 11 months ago

never thought of it that way -- interesting --  post   learned something new

Posted by Hannah Williams, Expertise NE Philadelphia & Bucks 215-953-8818 (Re/Max Eastern inc.) 11 months ago

Carol Williams yes, there is definitely strategy involved when pricing a property!

Debb Janes EcoBroker and Bernie Stea JD and as professionals we have some more flexibility as well in searching for price ranges than the general public has. 

George Souto I am not a fan of gimmicks!

Kathleen Daniels yes, in greatly appreciating markets, pricing can be a challenge.  You don't want to run the risk of overpricing. This is when multiple offer situations will drive up the price regardless of comps. 

Debbie Reynolds thanks, glad you found it informative. 

 

Posted by Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES, Florida Waterfront and Country Club Living (Tropic Shores Realty - Ich spreche Deutsch!) 11 months ago

Lise Howe yes, sellers don't know and we need to make sure they are aware of how a list price will affect buyer responses. 

John Meussner I agree, as professionals, we know to search a bit above and below the actual range. It's usually the public that is stuck with the preset price ranges on search engines that will miss these type of properties. 

Richie Alan Naggar and that is the truth. 

William Feela and I venture to say that most MLS don't not have a provision for cents! 

Scott Godzyk thank you, pricing correctly is crucial to success!

 

Posted by Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES, Florida Waterfront and Country Club Living (Tropic Shores Realty - Ich spreche Deutsch!) 11 months ago

Raymond Denton ...and that makes 2 pennies!
Georgie Hunter R(S) 58089 exactly my sentiment!

Dana Hollish Hill yes indeed, people need to know this. 

Lynn B. Friedman sometimes odd numbers appeal to certain groups of people especially some Asian groups. However, you better know what you are doing, not all numbers and combinations have the same meaning to the various groups of people of Asian descent so this could backfire. 

Jeff Dowler precisely!

Posted by Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES, Florida Waterfront and Country Club Living (Tropic Shores Realty - Ich spreche Deutsch!) 11 months ago

Laura Cerrano not shocking just mind boggling.... 

Tammy Lankford, thank you, the more exposure for a property, the better are the chances of success. 

Lisa Von Domek pricing is an art form that also can be learned and gets better with experience!  

Paul S. Henderson, REALTOR®,CRS, that is true for our searches as professionals, some buyers will not go higher than their absolute upper price threshold. That's when we come in to find the additional homes and oddly priced ones!

Nathan Gesner excellent point! Thank you.

 

Posted by Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES, Florida Waterfront and Country Club Living (Tropic Shores Realty - Ich spreche Deutsch!) 11 months ago

Walt Fish thank you, I agree with you. 

Debbie Gartner thank you, appreciate your comment!

John Marshall - FORE! thank you, some of this knowledge is acquired with experience!

 

Posted by Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES, Florida Waterfront and Country Club Living (Tropic Shores Realty - Ich spreche Deutsch!) 11 months ago

Grant Schneider thank you, the last thing sellers should want is to miss out on potential buyers. 

Tim Maitski thank you for the information. This is an interesting study your are talking about. Maybe it would be better then to make offers with slightly odd numbers rather than round ones? 

Jeffrey DiMuria 321.223.6253 Waves Realty I so agree, I thought it was old school, I have never been a fan of this approach!  

Lana Robbins Realtor ® Licensed Real Estate Broker thank you and happy new year to you as well!
Kathy Streib exactly! This would work for sausage at Walmart or socks as JCP but not for someone's biggest asset or investment.

 

 

 

Posted by Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES, Florida Waterfront and Country Club Living (Tropic Shores Realty - Ich spreche Deutsch!) 11 months ago

Marte Cliff thank you for the information about your letter. It's a great way to educate a prospective seller. 

Nick & Trudy Vandekar, 610-203-4543 thank you, I appreciate your comment!

Joan Cox we can't really blame sellers for this thinking, it's what we are all used to from retail stores. It's up to us to explain why it's not the best thing for them to do. 

Posted by Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES, Florida Waterfront and Country Club Living (Tropic Shores Realty - Ich spreche Deutsch!) 11 months ago

I agree with Marti Cliff.  Never play "cute" particularly around the important $25,000 break points.

Posted by Betsy N. Robinson - Serving the Sandhills, NC, CNS (Everything Pines Partners, LLC.) 11 months ago

Betsy N. Robinson - Serving the Sandhills, NC agreed, there is no place for cuteness in selling real estate. 

Posted by Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES, Florida Waterfront and Country Club Living (Tropic Shores Realty - Ich spreche Deutsch!) 11 months ago

Thanks for sharing. Sounds like you are "RIGHT" on the money. Wishing for you a successful "18".. 

Posted by Robert Hicks (United Country River City Realty) 11 months ago

Pricing is definitely important!  Especially when you consider a price reduction down the road.  That $2000 difference is not going to capture any new buyers.  You have to look at the next reasonable bracket where homes ARE selling.  But that is a post all by itself!

Posted by Karen Feltman, Relocation Specialist in Cedar Rapids, Iowa (Cedar Rapids/Iowa City, IA KW Legacy Group) 11 months ago

Dear Silvia,

That sort of pricing used to work somewhat, but with all the aggravators out there, it is better to price for their algorithms & radio buttons.

 

Posted by Dörte Engel, ABC - Annapolis, Bowie, Crofton & rest of Maryland (RE/MAX Leading Edge) 11 months ago

Robert Hicks thank yoou and same to you!

Karen Feltman you are correct. Some sellers think that a small price reduction will to the trick when in reality they have missed the mark by much more right from the get go.

Posted by Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES, Florida Waterfront and Country Club Living (Tropic Shores Realty - Ich spreche Deutsch!) 11 months ago

Silvia, I remember an agent a while back in our are who used to incorporate the number of the address into the list price...so always an odd number.

Posted by Gloria Todor, & Doug Durren (484) 431-3686 in SE PA (Century 21 Absolute Realty ) 11 months ago

Good morning, Sylvia!

So true!  When Buyers do a search within a price range, they will search from an even number.  Plus, when a Buyer is pre-approved, it is in a round number, not at $199,999,99.  With so many agents doing this, I cannot see it standing out.

Brigita

Posted by Brigita McKelvie, Associate Broker, The Broker with horse sense and no horsing around (Cindy Stys Equestrian and Country Properties, Ltd.) 10 months ago

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