The list price is the most important field in an MLS listing. Everything counts, but if the price is wrong, every other effort will have been wasted. If the price overshoots the market, you risk losing potential buyers to better-priced homes. But, just as important, if the format of your price is wrong, you will at a minimum introduce confusion – and delay – that you cannot afford.
Ignoring the comps and just looking at numbers, home prices can be wise, stupid or sleazy. Listings are almost always stupidly or sleazily priced, but closed prices are typically wise.
A wise number ends like this: x0,000 – where x is an even number. In other words, wise numbers are round numbers in $20k increments. Higher prices move the ‘x0’ leftward – and I won’t quarrel with x being odd there, nor at $250k and under. But: Wise numbers look right to buyers – offered and closed – and they close fine with sellers. The last sentence is the entire argument against ever using stupid prices.
Sleazy prices are even worse: $449,999. Can you hear South Park’s Eric Cartman parroting that number? Sleazy prices are transparent and facile attempts to fool people – which are predictably met with contempt by buyers:
Cheaters never prosper? Then why won’t they stop trying?
Caveat venditor: Wise prices sell fast and close cleanly. The other two, not so much.
But buyers take heart: You see a price like $279,900 and you think: “They’re not sure it’s worth $280k.” In fact, they are certain it’s worth $260k – or less – so you should lowball ruthlessly as Days-on-Market hits double digits.
I use the term ‘Last Call’ to refer to sellers who cave catastrophically at the end of a listing because they started too high at the outset – literally dancing The Desperation Waltz with the only remaining partner. But buyers can be that Last Call opportunist.
I like Tuesday mornings at 10:30 am for Last Call offers. The seller’s last hopes for the weekend will have evaporated; they are at their weakest. Declined or no response? Come back next Tuesday morning – but lower.
Whether sleazy or stupid, inept numbers denote inept agents and misled sellers. Take account of those facts and discount for deceit. Cheaters never do prosper, but you can profit from their delusions.
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