Choosing the best listing price for your Silicon Valley property can be a challenge. Luckily, the Journal of Housing Research, which is an official publication of the American Real Estate Society, has conducted a study to find the best approach to pricing a home. Their findings suggest that it is best to list a house at just below a round number. Researchers took 1,000 buyers in Virginia who were looking at over 370,000 listings and were able to look at how both “rounded pricing” and “just below pricing” impacted the buyers. Pricing your Silicon Valley property with the just below pricing strategy should result in a higher sale price, while not driving away potential buyers.
Sell Silicon Valley Real Estate for More by Pricing Just Below a Round Number
Often, buyers are more attracted to a house listed at $199,000 instead of $200,000. The numbers in the study concluded that the houses priced with the “just below” strategy ended up selling for 2.5 to 3 percent higher than a house priced with a “rounded pricing” strategy. The study, however, also noted that homes with a “rounded pricing” strategy spent less time on the market due to the demand effect. All things considered, the “just below” pricing strategy really has shown to be the best option for more money for Silicon Valley real estate.