It's called "left-digit effect." According to Vicki Morwitz, a research professor of marketing at the Stern School of Business at New York University, "We encode it in our minds before we read all the digits."
You see it all the time. Not just in real estate but in almost every sales vertical. In a joint experiment, MIT and the University of Chicago had three basic prices: $34, $39, and $44. The $39 item sold the best; even better than the cheaper price of $34. Customers sometimes prefer to pay a middle price because it can feel as though they're getting a good deal. In addition, the researchers found that the mind sees the first number of the two and registers it as in the 30-dollar range, even though it is almost $40.
Setting a home price with a nine can be successful as well. After conducting a study Trulia found that 53 percent of all home prices ended in nine.
Every homeowner wants to get the best price when selling their home, but how do you guarantee that you receive maximum value for your home. One way is to price it a little high, but that will reduce the exposure your property receives and may disappoint potential buyers. A better way is to choose a qualified team of real estate professionals who will properly price your home to ensure maximum exposure.
While a home should always have its unique characteristics highlighted, in order to receive maximum exposure through marketing strategies, including pricing, The Mackenzie Rae Team improves the overall appeal and salability of a home to have a successful showing both online and in person.