Price Bracketing [Effective Home Pricing Strategy]
Gone are the days when the local newspapers and driving around the neighborhood were the most utilized house hunting methods of Buyers. In this age of instant gratification, majority of them, if not all, go online and search on sites such as Trulia, Zillow, and Realtor.com, to get their property search fix. These sites use price points or brackets (minimum and maximum price points that are in whole numbers) in their search. Let's say Buyer1 is looking for a single family home with a price requirement of $600k to $650k and Buyer2 is also looking for a single family, this time, with a price range of $550k to $600k. Naturally when they go online, these are the price points they're going to input into the search criteria so only the properties that match their price requirements will show. If you're a seller of a single family that is priced at $599,990, Buyer2 will see it, but not Buyer1.
This is the reason why as a Seller, your first order of business is to get your property priced correctly. You can only achieve this by consulting with a qualified and experienced Realtor®. The “old-school” technique of pricing at “$9.99" like it's a sale item in a department store, doesn’t give a seller the best opportunity to expose their listing to the highest number of buyers. It must be priced correctly so it can fall within the search of two different buyers price range.