Don’t make this common pricing MISTAKE when selling your home!
In this weeks blog, we discuss a common strategy used by agents which may actually be harming the property advert - DON’T miss out on a potential buyer because of the simple mistake!
❌ There are certain things which Estate Agents in the UK are still doing which quite frankly should have been left behind as soon as the digital age started to become the force to be reckoned with that it is today.
🏡 The issue I wanted to highlight in this weeks blog refers to the pricing strategy when it comes to the marketing/ sale of your home.
👉 The pricing strategy that involves listing a home at a price just below a round number, such as £299,999 instead of £300,000, is often referred to as "charm pricing."
🏡 This tactic has been used by estate agents and sellers for many years, with the belief that such pricing makes the property seem cheaper, thus more attractive to potential buyers.
🧠 For example, £299,999 feels psychologically less than £300,000, even though the actual difference is only £1. This strategy is borrowed from retail pricing, where items are often priced at £9.99 instead of £10.00 to make them seem more affordable.
📲 However, in the digital age, the effectiveness of charm pricing in the estate market has come into question.
👀 This is largely due to the way homes are searched for and listed on online property search platforms such as Rightmove, Zoopla and OnTheMarket. Most property search websites allow buyers to filter listings by price using predefined ranges - something often done by buyers to filter out unsuitable properties.
👉 *Did you know there are more than double the number of properties on the market across Doncaster, Wakefield, Barnsley and Pontefract now compared to 2 years ago!* 👈
✅ For instance, a common search filter might be £250,000 to £300,000. If a seller prices their home at £299,999, it indeed falls within this search range.
❌ However, if the next price filter is from £300,000 to £350,000, a home priced at £300,000 would appear in both search ranges, potentially being seen by a broader audience.
👇 Here's why pricing at a round number like £300,000 can be more effective in the digital era:
1. Wider Search Visibility
As mentioned, properties priced at round numbers are likely to show up in more search results due to the way price filters are set up on most property search platforms.
2. Simplicity and Memory:
Round numbers are easier for people to remember and communicate. A buyer is more likely to remember and mention a home priced at £300,000 rather than one at £299,999 when talking to friends, family, or their estate agent.
3. Digital Sorting Algorithms:
When listings are sorted by price on a website, properties priced at a round number might either appear at the top or bottom of a price filter range, making them more likely to be seen during casual browsing.
4. Perception of Transparency and Fairnes:
Some buyers might view charm pricing as a gimmick or as less transparent. Pricing at a round number can be seen as more straightforward and honest, potentially building trust from the outset.
🤷♂️ Some industries may respond well to charm pricing, while others may find round number pricing more appealing.
💬 My thoughts as a property professional are to do what is necessary to really maximise the eyes on your home - in this instance sit on a price bracket, because if you don’t you could be invisible to your potential buyer!
👉 If this “Charm pricing” strategy is suggested to you then ask the person why they feel having less eyes on your property advert is a good thing?
👀 I’d be interested to hear their response.
👋 If you are looking for more hints and tips on how to maximise the views on your property advert then please feel free to contact us. Just fill your details in the form below and we’ll be sure to reach out.
Over and out,
Stephen Geer
