One of the most important things we do as Colorado real estate agents is to counsel home sellers on how to price their house effectively. While we can identify the general range of price that we think a house will sell for, the exact price is actually really important.
Why is it important?
Let’s say we are going to list your home in Colorado Springs, and we think it will sell between $298,000 and $303,000. In this case, we recommend you list the house at exactly $300,000.
Some agents would recommend you list the house at $299,900. The logic they use is the same reason that a pack of gum is $0.99 instead of a dollar. They’re betting that the home priced just slightly cheaper than $300,000 will psychologically seem cheaper and be more attractive – even though the difference is only $100 and that would probably be negotiated in the offer anyway.
We think this strategy can harm you. We would list it at $300,000, and here’s why.
In most Colorado Springs real estate websites, there are predefined price ranges for the property search. Most of these searches use even numbers. You can search from $250,000 to $300,000, or from $300,000 to $350,000. This is also how Colorado Springs real estate agents search the Pikes Peak MLS. Most agents search in even number ranges.
When you price your home at $299,900, it will show up in those $250,000 to $300,000 searches – and it will ALWAYS look like the most expensive home. It will be at the top of that range.
When you price your home at $300,000, the same thing is also true. BUT – the home ALSO shows up in the searches from $300,000 to $350,000, and it looks like one of the least expensive homes in that search. Not only do you get more people looking at the home online, many of the people looking will see your home priced very attractively against the competition. And in our book, that’s a very good thing.
Pricing your home effectively means exposing your Colorado Springs home for sale to the largest pool of home buyers and their real estate agents as possible. Because we price your home effectively, our seller clients get more showings and a better chance at a good offer in the shortest amount of time.