Is There Any Psychology Involved in Pricing Real Estate?

The psychology of pricing, the idea that different prices influence our perceptions and actions, isn’t just a woo-woo concept peddled by marketing enthusiasts. Researchers have actually studied how pricing impacts consumer behavior extensively. Pricing real estate, however, is its own beast to tame.

You aren’t selling a cup of coffee for a buck and a half — rather, there are hundreds of thousands of dollars on the line. When you set an asking price, your North Star is to determine the fair market value with the help of your real estate agent’s analysis of comparable sales. Shoot too high, and you could risk sitting stagnant on the market.

Price Accurately With a Top Agent

Setting the price correctly for your home sale is one of the most difficult tasks in the selling process and is something experienced agents excel at. What’s more, HomeLight data shows that top agents can help sell your house faster and for more money than an average agent.

Find Agent

But there are a few real estate pricing strategies we vetted with top agents and through valid research (and even listing data) that fall more into the territory of psychology. While gimmicks won’t do you any favors, some subtle tweaks to your price may help you convey the right message.

It can be as simple as whether the number you choose is highly specific vs. perfectly rounded, ends in “99,” or seems (magically) soft-lobbed right into a buyer’s search filters.

from HomeLight Blog https://www.homelight.com/blog/pricing-real-estate/