Magic Numbers in Real Estate

Magic Numbers

Magic Numbers in selling real estate is real.  And, in all other markets as well.  The prices of goods no matter where you shop are priced to encourage a sale.  So, this is where the savvy seller learned to look more competitive with the sale price.  Dropping a price just a penny for small items or maybe a dollar on large items the seller is able to place his goods in a lower sales bracket. At least in the mind of the buyer.  So, it is not uncommon to see $29.99 instead of $30.   Gas stations are notorious for their $1.99 and then another little "9" up in the right hand corner of the price.  So, essentially it is one tenth of a cent less than  $2.00.  But, there is not doubt a consumer might drive the extra distance for that less expensive gas down the road. There are several ways to play with the numbers to create some magic to encourage a sale.  In fact it even has a name.  It is called Psychological Pricing.  But, just knowing how to price an item is not enough.  You need someone that can make the numbers work its magic to its full benefit.

Magic Numbers in Real Estate

In real estate there are two types of magic numbers.  The first, as described earlier, is by placing your product into a lower denominational sales bracket by dropping a price a penny or a dollar.  The second is by finding that magical sale price number that is not so high a buyer decides to just build themselves. But, not leaving money on the table. In a recent sale a house was listed for $630k.  Although, not a bad price for this particular house it bordered the current price of what it might cost per square foot to build a new house.  The home received very few showings, even though the realtors were aggressive in selling it for their client.  So, they dropped the sale price to $599k. And, just as you would imagine, the number of showings doubled.  The original price was too close to what it might cost to build at the current $200 per square foot.  A buyer might think they should just build and get exactly what they want.  But, the price dropped just below that current build rate so it makes it harder for a buyer to justify going through the hassle of building.

Finding the right Magician

A good magician has lots of magic in his bag of tricks.  But, a great magician has a feel for the crowd and understands how to use magic numbers to benefit the client.  This is the kind of magic that comes from experience and practice.    Shawn Wilmoth has been practicing the art of the sale for over 30 years.  And most of those years were spent in selling and marketing his own properties.  So, he has keen understanding of how to price a property to sell but not leave money on the table. If you are in need of realtor to work some magic on a property you have to list, Shawn is your magician.   Or, if you are looking for someone to help you purchase a property, Shawn has a feel for the market and knows what is a fair price. Feel free to call or email Shawn,  he can easily be reached at 865.205.9353.  Check out the website for current listings.