I see a common occurrence across all markets when looking at real estate websites. The internet is by far the most valuable tool for advertising our listings yet I see something very wrong with real estate agents’ pricing strategies. Have you seen homes listed for $99,900, $199,900, etc.? I see them all the time in Indy.
We operate out of Indianapolis, Indiana and as of right now, there are 95 listings with a price range from $99,900 to $100,000. Only 29 of these listings are priced right at $100,000, the rest are a mixture of prices, $99,999, $99,997, $99,950 and so on. My argument is this: If you can price your listings at the exact price point that is utilized by the major real estate search engines, you should do it.
Here is Why
Take a look at these screenshots from Zillow, Trulia and Homes.com:
Point 1: A customers’ primary criteria for filtering properties is the price range. The customer that is looking at homes from $100,000 – $150,000 won’t see your listing when you price it at $99,900. How much did that $100 difference impact the visibility of your listing? Do you think a buyer looks at that price compared to a $100,000 listing and sees a significant difference in value?
Point 2: Not only are you limiting your listings visibility on property searches, a lot of those searches sort homes by price, high to low or low to high. By placing your listing right on a prominent price point, you have a great shot at being the first listing a customer sees. In the example I gave above for Indianapolis, the best your $99,999 listing’s position could be is 30th.
I hope I got you thinking about your list prices a bit more but I would really like a counter argument as to why you would list a home at $99,900 vs. $100,000. If there is a good reason, I’d love to hear about it, you might even change my mind.