Wednesday, 3 February 2010

Clever pricing

Property pricing is of paramount important these days.  I don't mean the question of 'value' - but instead the art of setting the right price so that the portal searches are optimised.  For example: you have a house to sell worth approximately £1 million. The agent suggests an asking price of £999,999.  "It's a psychological price point" they tell you.  I don't agree.  At all.  I say - market at £1,000,000, and here's why:

  1. £999,999 is a cheap ploy - an 'Asda' price.  Your buyers aren't stupid - don't treat them as if they are.  Give them some respect and a 'Harrods' price.  Make it £1 million straight;
  2. £1 million is actually an aspirational price point - your buyers WANT to spend one million pounds on a house, and tell their friends and family that they have done;
  3. £1 million is a very confident price - it says "my house is worth a million pounds"  £999,999 is apologetic, humble: it says "make me an offer";
  4. £1 million gets your property shown in more searches.  At £999,999 on Rightmove, your property will only appear in searches up to £1 million.  At £1,000,000 straight, it appears not only in searches up to £1 million, but also those over: potentially doubling traffic to your property advert.
Forget the £999's - go for the £000's - you'll be glad you did.

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