{"id":726,"date":"2015-05-07T16:02:36","date_gmt":"2015-05-07T16:02:36","guid":{"rendered":"https:\/\/369034.us19.myftpupload.com\/?p=726"},"modified":"2015-06-11T17:31:09","modified_gmt":"2015-06-11T17:31:09","slug":"listing-presentation-tip-pricing-2","status":"publish","type":"post","link":"https:\/\/369034.us19.myftpupload.com\/?p=726","title":{"rendered":"Listing Presentation Tip – Pricing"},"content":{"rendered":"

\"images\"<\/a>Pricing the Property<\/p>\n

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Hello everyone here is a great article that I found and I wanted to share with you and I know it will help you. We have been using this information for a long time and with great success. You can use this idea during a listing presentation and to sell the property faster ! Here it is !<\/p>\n

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Is there a science or psychology to pricing your client\u2019s property? I believe there is, and that price is a direct function of marketing. A strategic market price will complement your marketing campaign and position your client\u2019s home effectively in the marketplace.<\/p>\n

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Let\u2019s look at the four ways that psychology can influence the price.<\/p>\n

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  1. The $19.99 syndrome<\/strong><\/li>\n<\/ol>\n

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    It amazes me how many agents price with a 999 or 900 at the end. You always see $199,999 or $199,900. Why does 99 percent of the agent population follow the crowd and price the same way?<\/p>\n

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    Well, many agents are not looking at the price as a function of marketing. It has been said the 9s came about in the 1880s convincing the gullible that they were getting a bargain. Many discounters use 99 in their pricing, and it does not fool smart people.<\/p>\n

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    The main reason it can hurt your listing is that most consumers start their search online when looking for a home. If a buyer is looking between $200,000 and $225,000 for a home, and you priced your at $199,999, that consumer might not see the property online.<\/p>\n

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    The best advice is to price at $200,000, as you will capture both sides of the search. Someone looking between $175,000 and $200,000 and someone looking between $200,000 and $225,000 will find the property online.<\/p>\n

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    Also, you should position your client\u2019s home as luxury brands do, not as discounters. For instance, Godiva chocolate prices at $36.00, not $35.99, and Neiman Marcus prices at $625.00, not $624.99. Ferrari and many other luxury brands also use this model for their products. Do they know something or is this just coincidence? Does the consumer perceive this as a higher-quality product? These brands apparently think so.<\/p>\n

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    1. The power of four and seven<\/strong><\/li>\n<\/ol>\n

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      Through my hours of research, reading and studying the psychology of price, the concept of the power of four and seven was evident. For example, a price of $247,000 or $244,000 is precisely priced, and appears that the seller has scrutinized cost, which could suggest to the buyer that there is less negotiation room. This assumption benefits the seller.<\/p>\n

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      Another reason is that the price is unique and stands out to the buyer. Think about all the property listings displayed on all the website portals, like products on a shelf at a store. A price, unlike the others, stands out. Because it\u2019s different and more unique, it will attract the buyer\u2019s attention. Examples of this would be Home Depot or Wal-Mart, who use the four and seven frequently on their sale items. They want to differ from their competitors.<\/p>\n

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      There is also something call the \u201cRight Side Digit Effect.\u201d So, a price of $227,000, has the perception of looking like a better discount or value than $229,999.<\/p>\n

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      Some believe that using the four and seven in your pricing is more emotional to consumers. It\u2019s a friendly number that leverages the buyer\u2019s ego and self-image and has a higher perceived quality of what you are selling.<\/p>\n

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      And don\u2019t forget \u2014 seven is a lucky number.<\/p>\n

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      1. How you write the price matters<\/strong><\/li>\n<\/ol>\n

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        If you take your marketing offline, such as property fliers, ads, signage, etc., the way you write it can also have an effect on how people perceive the price.<\/p>\n

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        The Journal of Consumer Psychology found that when people have to spell it out in their heads, it sounds higher.<\/p>\n

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        Look at these three prices:<\/p>\n

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