$219,900 vs. $225,000

What difference does it make — besides an extra $5k — to list a home for $225,000 instead of $219,900?

PriceThe home listed for $219,900 will get picked up by Buyers searching for homes between $200k and $225k.

By contrast, the $225k listing will likely show up in two Buyer searches:  those searching between $200k – $225k, and those searching between $225k – $250k.

Thanks to Edina Realty City Lakes Office Manager Matt Loskota, at today’s office meeting, for that tidbit (and the following one).

P.S.:  What about the psychology of pricing in fractions, i.e., why a gallon of gas is alway $2.99 instead of $3?

When it comes time to generate marketing material for the $225k listing, a savvy Realtor will use “$224,900” instead of “$225,000.”

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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