The Pricing Mistake That Costs Home Sellers Thousands
Most buyers start their home search online using price filters and this is where one simple pricing mistake can cost you thousands I will show you the strategy smart sellers use to increase visibility attract more buyers and get stronger offers.
How Buyers Search for Homes
Online real estate portals sort homes by price ranges using whole number brackets common ranges are set in increments of $25,000, $50,000 or $100,000 buyers search using ranges like $400,000 to $450,000 or $450,000 to $500,000 listings priced outside the range do not appear in that search even if they are only off by a dollar.
The Problem With Discount Pricing
Sellers often price their homes like retail items for example $449,900 instead of $450,000 this discount logic works for everyday items but real estate is different buyers negotiate they compare and they filter by ranges if your home is worth $450,000 pricing it at $449,900 can cause you to miss an entire buyer group searching $450,000 to $500,000 reducing your exposure and reducing your chances of stronger offers.
A Real Example
In a recent month thirty homes sold between $400,000 and $500,000 five buyers searched the full $400,000 to $500,000 range fifteen searched $400,000 to $450,000 and ten searched 450,000 to 500,000 if you price at $449,900 about twenty buyers see your home but the ten buyers searching $450,000 to $500,000 will not when you price at $450,000 you appear in both brackets giving you up to thirty potential buyers instead of twenty.
Why This Works
Pricing at the bracket number places your home at the top of one range and the bottom of the next this creates two psychological advantages buyers searching $400,000 to $450,000 see your home as top tier in their range and buyers searching $450,000 to $500,000 see your home as a bargain at the low end of their range while perception varies the real value is simple more buyers see your home.
More Buyers Means Better Offers
You cannot control what a buyer thinks about your home but you can strategically position your price to reach the largest audience more visibility increases the odds of a strong offer and even competitive bidding your price should work with your overall marketing plan including timing seasonal strategy pre marketing and launch events.
When This Strategy Has Less Impact
If your home is valued at $465,000 pricing at 464,900 will not move you into another bracket because the next whole number is $475,000 dropping from $465,000 to $450,000 or raising to 475,000 is not advisable so in cases like this the bracket advantage may not apply and pricing must be handled thoughtfully.
Why Pricing Is Not an Exact Science
A good realtor considers recent sales active listings pending contracts supply and demand days on market list to sale price ratios and months supply to determine fair market value pricing blends data strategy and market psychology using price bracketing correctly simply gives you a competitive edge.
Final Thoughts
Do not follow the crowd or price your home like retail merchandise use strategic price bracketing to expose your home to more buyers and increase your chance of getting higher offers if you want more selling tips or need help from a trusted local expert you can reach out anytime I work with experienced agents across the country and can connect you with the right professional for your area.
