Q. How can you easily attract significantly more buyers by INCREASING your list price?
First, you need to understand exactly how the majority of buyers initially found the property they end up buying.
The answer is easy to get, you simply need to know where to look .....
The National Association of Realtors hires an independent consulting firm to complete an annual survey of over 10,000 buyers where this exact question is asked, and these are the results:
- 52% initially found their property online
- 29% initially found their property with the help of a real estate agent
- 6% initially found their property by seeing a For Sale sign in the yard
- 6% initially found their property through a friend, relative or neighbor
Buyers Find Homes by:
Knowing where and how the Buyers actually found their home is the key to understanding how a particular price point can and does result in an increase of actual buyer traffic .....
We know with absolute certainty that 4 out of every 5 buyers had to either:
- Type in their exact price point criteria or
- Choose specific price points via a drop down price menu on a real estate website or
- Tell their broker what specific price point criteria is of interest to them.
It is important to note that none of these buyers ever saw a printed advertisement for their property compelling them to look at it .....
Quite simply, buyers think in terms of quarters, halves, or wholes ..... and this makes complete sense when you realize how most people think about numbers, especially the larger numbers associated with home prices.
In other words, a Buyer will almost always prompt their real estate website or broker to show them properties from $700,000 to $800,000, for example, rather than $699,000 up to $799,000.
So, if your property was priced at $699,000 ..... and a buyer asked to look at properties from $700,000 to $800,000, would your property show up on the search results?
The answer is a resounding NO. Computers can be very dumb. But your listing price doesn't have to be.
Price your home where Buyers searching in different price ranges have the highest likelihood of finding it.
Only 1 of the 5 homes above shows up TWICE - in both searches.
The smart price of $800,000 is capturing substantially MORE BUYERS. What about the Sellers priced at $802,748 ..... are they willing to take $800,000? Then price it at $800,000 and capture substantially MORE BUYERS!!
The retail strategy of capturing more buyers by pricing products to end with a “9” simply does not work when it comes to pricing a home. The platforms though which buyers are initially finding their properties are entirely different, and therefore the pricing strategy needs be in line with those platforms.
If you’re looking for a real estate professional that uses common sense strategies to capture the greatest number of potential buyers .....
Mike Krueger
cell: (970) 485-1518
email: mikek@realtor.com
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