Wednesday, February 18, 2015

The power of 9



There could be an advantage to listing your home with 9 near the end of the listing price rather than rounding to the next thousand.  The reason is what is known as the left-digit effect in price cognition.  

You don't normally see the new blender priced at $80.00, it's more likely to be priced at $79.00 or $79.99.  This is a strategy that has been proven to be good in real estate as well.

Strange as it might seem, a recent study in major cities found that houses with prices ending in "9", like $849,000 rather than $850,000, sold an average of 4.2 days faster and for $2,175 more.  Even though the asking price was lower, these houses sold for more money.
 
It's one of those strange facts that doesn't make sense, but can possibly make a bit more profit for you when you go to sell.

More on The Left-Digit Effect in Price Cognition here.

For more on listing your home, Get Jack.

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