Priceless: The Myth of Fair Value (and How to Take Advantage of It by William Poundstone (Get It Here)
If you house has been stuck on the market and just won't sell, Poundstone suggests trying a new pricing strategy to broaden your exposure and amplify your effects to sell.
He suggests using one smart psychological tactic: List your house with two prices giving a minimum price and a maximum price.
There are a number of problems with setting just a single asking price for your property.
Online Website Search Filters
Since most buyers begin their property search online, visiting a number of websites, the first problem lies with the actual search facilities of these websites.
Buyers scanning listings online usually set a minimum and maximum price range. By setting a single price you may be missing a lot of potential exposure because your asking price does not fall within that range.
A single asking price is often referred to as an anchor, it signals to buyers that you are prepare to accept offers a good deal lower than that number. Setting a price range changes that mindset.
Benefits Of Setting An Asking Price Range
Having two prices or a price range presents your potential buyers with some interesting questions and choice:
* Do they put in an offer at the low price?
* Less than the low price ?
* Or, somewhere in-between?
Range pricing is likely to attract a wider variety of offers, and the increase in offers will naturally result in higher prices.
Also See: My Biggest Real Estate Mistake Ever!