What is the deal with pricing homes in odd numbers? Am I missing something?
I am showing a listing this week that is $181,888. Is that some secret code or does the seller really need that $88 to move. I always see them listed for $199,900 and I understand that theory. It's quite the QVC tactic that I employ myself "Beautiful twin home just under $200K."
There is an agent in my office that always lists with 865 at the end, as in $359,856. I never asked her why. Does it help it sell faster or is it a secret code?
Wouldn't it be cool if it were a secret code? Like "888" at the end means "seller not moving," or "452" means "gotta sell - make an offer." It would be great if there were some kind of way to find out if the seller is really motivated when a Realtor writes "motivated seller" in the remarks section of their listing. I find that many "motivated sellers" are really not, it's the agent who is motivated, but they can't get their sellers to move on the price when presented with an offer.
If they could just list it at "175,666" I would know that the seller is evil, LOL. Or listing it at "329,757" means the seller is leaving town. I saw one listed at 201,100 last week. It must have meant "this is the 1."
Makes you think...
I have seen a lot of that out here in Denver Colorado. I just thing its eye catching.
There are also people who are supersitious (see numerology).
J- Maybe they do it because it's eye catching.
Kim- I would keep that lucky 2 streak going!
Anthon- AHHH! Numerology. I didn't even think of that. I will have to look into that some more and see what 888 means.
Stacey,
I have done on unique properties....just to get someone to call and ask....marketing at is oddest.
Some people base it on numerology. Some list it to draw attention to the price.
We had a client in Texas who did this very thing. Every listing was priced at $xxx,865. For one thing, it made it really easy for them to find their listings in th MLS - just sort by price. For another, they said it made the properties stand out for consumers with an odd price like that.
Having a code would really make things nice though, wouldn't it?
~Renae
Stacey, your post made me smile. Where we are, I haven't seen this pricing as much, but it does make the listing stand out from the rest. Good post.
I think that 8 is a lucky number in some cultures... must wiki this...
Interesting thoughts to ponder!
Laurie - Like the magic 8 ball
Tina - Cool - that's a good explaination.
Darleen - Good to make SOMEONE smile! Thanks!
Gita - I am going to look up numerology right now.
I wonder if I should have all my listing prices end in "976" and charge people $1.99 for every minute they're in one of the houses... ;-)
I think some of it is numerology or cultural/personal "lucky" numbers and some is pure randomness.
This was on RIS Media today:
From an interview with Bob & Teresa Kroll
Managers, Century 21 Pride
What's one of the most creative things you've ever done for a listing? "Every single one of our listings ends in the number 808. It's something we trademarked to our listings, because when you see something listed for $1,999,808, it's an eye-catcher."
Lindsay: Trademark. That's very interesting - read the exerpt above.
Ravinder: I LOVE that idea! I was laughing out loud when I read it!
Nancy: I think you are right, about not making you buy it, but will it make you want to look at it?
By the way, the 888 listing I saw was scary! It needs about 100,000 worth of work. So, no go. Maybe that's what 888 should mean - boo!
I am not sure what the 888 is but I do know that some marketing strategies refer to the power of 9. Of course all that is telling us is the same thing gas stations tell us. Oh and by the way I heard this the other day about gas station pricing and am trying to confirm it. They price it at $2.99 and then that little 9. I was told the little 9 means for 9/10 ths of a gallon. I will find out and let you know.
Mark
Mark: PLEASE let us know! I bet you are right!
Debbie: I get the counter offers - I employ similar methods, but do you get your homes sold quicker?
Jennifer: And I have to wonder, don't you knock out all the buyers looking up to 200,000 if you price it $1 more? Why would anyone want to do that?
The down side of this type of marketing is that your property may not show up on a MLS search for prospective buyers in that price range.
If a purchaser was to search for properties listing in the 190,000 to 200,000 range your vendors listing price of 189,888 will not only show up last in the list of 180,000 to 190,000 range but not even show on the original search criteria.
The opposite theory to this is Jennifer Harwick's comment regarding 200,001. Now you are first on the list.
Just a thought. Maybe not a good one, but a though just the same.
DAVE
Dave Yeoman: Except you wouldn't be 1st on the list because all the 200,000's would be before you.
Dave Robinson: At the end of mine will soon be 7 now. LOL - Maybe I will! You gave me something I never thought of before with the 299900 example. I always think the opposite way like don't price it at 200,001 because you will miss all the buyers searching up to 200,000 but the way you put it is true too!
Linsey: Good luck on your listing, let us know what number you did.
Stacey,
I use odd pricing and have since I started 12 years ago in the business. It makes your eye shift to a different spot in a sea of listings on a page that are all priced at $114,900. After you look at the third $114,900, you don't see the next three below that, your eye just shifts to the next price on the page.
Remember, anything in our business to make our listings stand out from the other listings on the page!
I have had many, many agents and buyers call just to find out where we came up with "that" price. Then we strike up a conversation and before you know it, you've got more buyers and more agents looking at your listing. I have sold several this way!
Funny thing is....when your price is $137275 at closing your sales price is $132275. The buyer's seem to carry the odd numbers to their offers and that often times becomes the agreed upon price. Strikes up conversations all the time!
I don't understand the wierd numbers. My first thought is that the other listing agent is a goofball. I did read an interesting article recently that showed that pricings that end in 500 instead of 900 sell faster.
The jist of the article was that peopple are conditioned to read 124,900 as 125,000 which is more than the asking price, but are more likely to read 124,500 as 124,000. I have not tried out the theory yet but plan on giving it a try.
Sandy: That's interesting, so you think you get more full price offers that way?
Karen: Now, That's what I'm talking about! Creative secret code! I like it!
John: Hmmm, that is something I never thought of. So, do they think they are getting a deal if it is 400 less? That's definatly worth a try.
I'm waiting for $xxx,xxx.99 to show up on a listing.
Maybe I'll try and convince a seller...
Karen: It's a gift. LOL
Lindsey: Next one you have to.
Joshua: LOL! If they could, they would!!!
Jim - Staging for prices!
Netta- So if it make the difference for their showings, it's worth trying, right?
Interesting post and comments. I especially like the suggestion of using XXX,500 rather than XXX,900, think I will try it next listing!