Is there any psychology involved in pricing real estate? Most academics belong to the school of thought that dissimilar prices impact our perceptions and actions. As such, pricing influences buyer behaviour expansively. Suffice to say, there is a science or psychology to pricing a property. A strategic market price will no doubt complement your marketing campaign. In addition, a premeditated market price will position your property effectively in the marketplace. Let us explore closely some ways in which psychology can impact the price of your home.
Have you ever noticed how many prices end in the 99s? Well, that is no accident at all. It is actually a clever strategy referred to as charm pricing. The basis of this marketing strategy is based on the basis of truism that prices in the 99s appear cheaper than the next round figure. Charm pricing psychologically gives buyers the impression that they are getting a bargain. However, does this strategy translate or work with real estate? According to extensive research, the answer is an emphatic yes. As such, you would be wise to round your listing price down to the nearest 9,000. The psychological effect of charm pricing is that 99s equals cheap. Secondly, pricing your property just right will help your property appear in more property searches.
Through many hours of research, reading, studying and observing the psychology involved in pricing real estate, the power of precise pricing is evident. A more precise price gives the buyer an impression that the seller has scrutinised the cost and is giving a fair and honest price. Moreover, a more precise price is more unique and stands out more to the buyer. Precise prices are essential to influencing people’s perceptions.
Writing the price
It is important to mention that the way you write the price mattes. That is to say, the way you write the property’s price has a massive effect on how perceive the price. Psychological research has identified that if buyers have to spell out the price in their heads then it seems higher to them. For example, $500 seems less than $500.00. Hence, a lot can be said about the way you write the price of your home.
It is essential to price your home competitively to get buyers through the door and then engage them as though it were already their home. Ask the buyers questions that will help them visualise living in the space. The psychological effect of this strategy is quite remarkable.
At the end of the day, your real estate pricing tactic should be grounded in reality. Moreover, it is essential to appreciate that there is a certain psychology in any kind of pricing.