(NAPSI)-The key to selling your house in today’s tough market might be to think like a retailer.
Storeowners, unlike most of us, are used to using all the little “tricks” that get buyers to part with their cash. You know, things like pricing something at $49.95 instead of $50. That nickel won’t buy a stick of gum, but there’s tons of evidence that the overall strategy works.
Experts say many of those same tactics can help move a home. Try these tips:
Homeowners considering dropping their asking prices to attract bids should understand how buyers perceive those cuts. A recent study found that if the left digit of two prices remains the same after a discount–say the “9” in $9,111, slashed from $9,222–buyers hone in on the right-hand numbers. And they tend to assume the discount is greater if those right-hand numbers drop from two to one, rather than nine to eight or seven to six. The decline is the same in real dollars, but “people think they’re getting a better deal,” Robin Coulter, a marketing professor at the University of Connecticut, recently told the Wall Street Journal.
Trying to settle on an asking price? Vicki Morwitz, a marketing professor at New York University’s Stern School of Business, says round numbers, such as $495,000, convey quality and prestige, while a specific number, such as $494,863, makes buyers think “deal.” If you’re after that quick sale, she told the Journal, “you want to go for a precise number.”
Differentiating your house from the flood of others on the market has the added advantage of heightening your own positive feelings toward your home in the (entirely possible) event that you wind up staying put for however many years to come. But remember: In this environment, a new coat of paint on the front door won’t cut it. Instead, Consumer Reports recommends improvements like adding a new roof to enhance the value of your home.