Thursday, February 12, 2009
by Sam Miller
The real estate market in America has changed more in the past year than I believe it changed during the prior 10 years combined. The number of ready, willing and capable buyers today is at the lowest level I have seen while the number of homeowners who truly need to sell their homes is approaching record levels. This translates into fewer buyers buying while a greater number of homes remain on the market unsold.
Years ago many real estate professionals bought into a concept that I like to call the real estate K'Mart pricing method. Instead of pricing a home at $200,000 they would price it as $199,900 because they thought it sounded better. The real estate landscape has since changed dramatically and with the addition of consumer friendly online MLS systems and the real estate listing websites that allow consumers to search for homes...that same $199,900 listing price will now eliminate 50% of your buyers instantly and here's why:
- $199,900 is an odd number price and home buyers do not generally search for anything other than even number prices such as $100,000, $125,000, 150,000, $175,000, $200,000, $225,000, $250,000, $275,000, $300,000 and so on.
- A home priced at $199,900 will only show up on a search of $150,000 to $200,000 and it will be invisible to anyone looking at $200,001 or higher.
- When your home is priced at $199,900 it won't show up when a buyer is searching for homes priced at $200,000 to $250,000 and it won't show up when they are searching for homes that are priced between $200,000 to $300,000.
- By pricing your home at $200,000 you will instantly connect both price ranges together and this is where the name "Price Bridging" comes from. The $200,000 listing price can quickly and effectively double the number of buyers who will be exposed to your home.
This price bridging method can be beneficial to you regardless if your home is valued at $50,000 or $500,000. If you are interested in obtaining the maximum exposure for your Knox County Ohio home we are only a phone call away.
Sam Miller
RE/MAX Stars Realty
(740) 397-7800
