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.
To determine the optimal listing price, it is crucial to understand how these search engines work. When people search the internet for homes, they are generally searching within home price brackets, typically in $25,000 increments. 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!