Want to sell your home for Top Dollar? Price it to end in 99
“Psychological pricing” is the phenomenon where items with prices ending in .99 sell more and faster than items with prices without the .99 tag. Zillow paired its data with studies that examined the effect of psychological pricing on consumers.
A study by Schindler and Kibarian examined retail sales and concluded that items with a tag that ended in .99 sold 8% more than items that did not. Zillow found that houses sold up to one week faster when priced ending in .99, eg. 429,900. You can use this strategy with your agent to get an edge on subconscious buyer appeal. Learn more about Zillow’s data studies in our list of best real estate books for 2016.
Here is a list of 5 most common requests that home buyers make to sellers to close the deal
#1 “lower the sale price”
#2 “make minor repairs”
#3 “pay for some/all buyer’s closing costs”
#4 “change the closing date, extend or shorten escrow period”
#5 “give money to buyers instead of making repairs to home”
(source: consumer housing trends report 2017)
Attention Home Sellers: an experienced Realtor can help you mitigate these requests in your favor
The real estate market is tied into consumer confidence and sentiment. That is why it’s important to track the consumer confidence survey. The Conference Board Consumer Confidence Index® decreased in March, following an increase in February. The Index now stands at 127.7 (1985=100), down from 130.0 in February. Consumers’ assessment of current conditions declined slightly, with business conditions the primary reason for the moderation. Overall expectations remain quite favorable. Despite the modest retreat in confidence, index levels remain historically high and suggest further strong growth for the economy (and real estate sales) in the months ahead.
The real estate market is tied into consumer confidence and sentiment. That is why it’s important to track the consumer confidence survey. The Conference Board Consumer Confidence Index® increased in February, following a modest increase in January. The Index now stands at 130.8 (1985=100), up from 124.3 in January. Consumer confidence improved to its highest level since 2000 (Nov. 2000, 132.6) after a modest increase in January, Despite the recent stock market volatility, consumers expressed greater optimism about short-term prospects for business and labor market conditions, as well as their financial prospects. The proportion expecting more jobs in the months ahead increased from 18.7 percent to 21.6 percent.
Overall, consumers remain quite confident that the economy will continue expanding at a strong pace in the months ahead. Consumers’ outlook for the job market was also more positive. (Source: Consumer Confidence Survey)
Similarly, sellers are often leery of pricing their home on the low end. But as counterintuitive as this seems, this strategy can often pay off big-time. Here’s why: Low-priced homes drum up tons of interest, which could result in a bidding war that could drive your home’s price past your wildest dreams.
5 Reasons To Sell Your Home Early In 2018
- Mortgage rates are historically low which is drawing buyers into the market before they go up
- Inventory is low and demand is high. The less homes on the market, the better for you. If you want top dollar, then competition from other home sellers will decrease your chances.
- Home prices are still increasing
- People have more money in their pocket, unemployment is on the decline
- Millennials are ready to commit. This age group is projected to account for 43% of home buyers in 2018 (source: realtor.com)
Ready to sell your home? Call today 323-717-2262
The real estate market is driven by the emotions (and confidence) of home buyers. That’s why tracking the Consumer Confidence Index will give you an indicator of things to come in the future of real estate sales. The Consumer Confidence Index® decreased in December, following a modest improvement in November. The Index now stands at 122.1 (1985=100), down from 128.6 in November. The decline in confidence was fueled by a somewhat less optimistic outlook for business and job prospects in the coming months. Consumers’ assessment of current conditions, however, improved moderately. Despite the decline in confidence, consumers’ expectations remain at historically strong levels, suggesting economic growth will continue well into 2018.”
I predict the real estate market will stay steady yet may see prices increase at a slower pace.
Source: December 2017 Consumer Confidence Survey®
If you are ready to buy/sell a home or have any questions, call me today…
- Tidy up to make your house stand out
If you’re looking to sell quickly, you’re going to want to start cleaning, especially before those listing photos are taken
- Have your house staged
Want to go the extra mile beyond cleaning? Consider having your house staged, a way of decorating it so it’s more attractive to buyers
- Hire a professional photographer to take listing photos
A professional photographer has all the tools to capture the right lighting and make everything look brighter and inviting.” The pros also have wide-angle lenses to fit the entire room in the photo.
- Make your home available for showings
Once everything is set up, get ready to spend a lot of time away from your home so buyers and real estate agents can view the property comfortably— without you or your pets wandering around
- Find the right price
Staging and marketing your home are important components, but at the end of the day, the amount of money you’re asking buyers to pay could be what seals the deal
Consumer confidence definitely affects the Real Estate Market and currently the Consumer Confidence Index is at 125.9, up from 120.6 in September. Consumer confidence is at its highest level in 17 years which was boosted by the job market. Confidence remains high among consumers and their expectations suggest the economy will continue expanding at a solid pace for the remainder of the year which proves that selling during the holidays can be a great idea because economic conditions are unknown for 2018.
Your home’s value is likely higher than you think, If you are wondering what it’s worth, call me today @ 323-717-2262