When it comes to sticking a price tag on your home, there are two different schools of thought. Some real estate experts believe that a round number, like $300,000, is best because the home shows up in more home searches. Think of it this way: If a prospective buyer is browsing for homes on a real estate website, they may filter their home search by price. Whether they’re searching for homes between $250,000 and $300,000 or $300,000 to $350,000, this specific $300,000 home will show up in both searches, and be seen by more buyers. In fact, a recent study shows that these homes enjoy a shorter time on the market. Plus, some studies say buyers find these sellers more trustworthy!
However, a new study from the Journal of Housing Research suggests the very opposite. Instead of pricing your home for $300,000, the study’s authors believe that you should instead use the “just below” technique and list it for $299,999. “Our study suggests that by using the ‘just below’ pricing strategy sellers can price their home slightly higher without driving away potential buyers. As a result, they end up selling their house for more,” explains Eli Breach, one of the researchers.
Here’s why it matters for you: If you are seeking to list your home for more than it may be worth (let’s say your neighbors recently sold for quite a bit less, but you’re underwater on your mortgage payoff and are hoping to get more), it might not be a bad idea to start by using the just below strategy. In this scenario, the study suggests that it may be a bit easier to get away with pricing your home a little bit higher than the market would normally allow.
In most sales, however, a round number may be best. Ultimately, we always recommend you carefully consider your home’s actual value and consult your EveryHome agent for individualized assistance. Happy home selling!