The $394,727.89 House (Huh?!?)

for sale

Consumer Psychology and the Too-Precise Price

When you see an oddly-priced “For Sale” home, there are two possible explanations (at least in my experience selling residential real estate):

One. Drawing Attention.

The way to stand out from homes listed at $389,900, $399,900, etc. is to price at $398,731 or some such (I haven’t seen a home priced in cents . . . yet).

Marketing Gimmicks & Cockroaches

Which lead to reason #2:  consumers can think a non-rounded price is somehow more accurate and “scientifically” arrived at.

Experienced agents, on the other hand, view a too-precise price for what it is:  a marketing gimmick.

Just like cockroaches, however, you seldom see only one, which is why I frown on the practice — and generally have a negative association with such listings (and their agents).

P.S.: What should a Buyer offer for a house listed at $398,731?

My suggestion:  $386,529.

See also, “$425,000 vs. $424,975“; and “The Too Precise Price:  Exhibit A.”



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