Joshua Jarvis - Georgia Realtor's Blog
6,856 viewsWalmart Pricing
Written by Joshua Jarvis - Geor..., Agent in Atlanta
September 12, 2008 12:49 PM Home Selling in Atlanta
347 views
I recently wrote a blog post about Walmart Pricing and why it's an outdated and poor strategy. You can read about it there, but I wanted to go into more depth here. As Trulia and other websites expand their capabilities, this will be less of an issue. In particular, when a user uses SNAPSHOT, they don't have the same limitations that the traditional search engines do.
If you are wondering what I am talking about, I'm talking about Pricing Levels.
A $325,000 home will be found from a buyer searching from $350K and below, since most search engines employ $25,000 increments in their price range search. However, a home priced at $324,900 will only be found by buyers searching for home at $325K and below.
This information is huge. Those of us on the internet know (or should) and should be educating our sellers.
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Comments
This pricing stuff is absolutely right and we speak it from lead to lead, from appointment to appointment, from price reduction conversation to price reduction conversation. Regardless, some folks are not as savvy as others and I find that many agents just don't get it.
I was showing $600,000+ properties in a really nice Northside neighborhood and a 30+ year veteran who is an agent with one of Atlanta's most established and revered brokerage houses met us at one of the appointment only showings.
The list price of the property was something like $695,483.00.
As a matter of fact, all of her listings had these oddly numbered prices - we looked at 4 of her listings that day.
I asked her - "hey, I'm just curious - why are your listings priced with odd numbers?" She said, "oh, I don't know that's just the way I was trained to do it and the way that I've always done it. If you can think of a better way, then just tell me."
I looked at her and realized that I did not want to take the conversation any further.
Three price reductions later, that property just went Pending at $620,000.00.
Maybe I got to her subliminally - rock on Joshua.
I remember showing some in-town property to a Tech alum and there was an agent who's strategy was to price it odd like you are mentioning, to stand out. This agent's strategy was that people searching online would just be sooooo impressed by the number of listings and brilliance of this strategy. Not sure if it sold the seller's home or not.
His homes were priced something like $450,123 or something so that everyone would know.
There's also a strategy to "lure" agents when you see a gap in prices... for example, there's a glut of $425K properties so you price it at 423 or something to stand all by yourself.
For internet purposes though, I say stick to the 5's and 10's unless you have a compelling reason not to.