June 27th, 2020
We know that one of the first considerations and possibly one of the most stressful parts when selling a home is setting the right price. Did you know there is some science behind price setting? Here’s a tip on setting the right price using the number 9
In a joint experiment on women’s clothing prices, 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.
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.”
Setting the Right Price Using the Number 9
Setting a home price with a nine can be successful as well. After conducting a study from October 2011 to October 2012, Trulia found that 53 percent of all home prices ended in nine.
In addition, the number nine is considered to be lucky in Chinese culture. The word “nine” has a similar pronunciation with the word for “everlasting.” Also, since nine is the highest single- digit number in base ten, it stands for completeness and eternity.
If you are thinking of selling your home and would like some solid advice on market value and pricing, please give me a call. I can pull up all of the comparable listings for similar homes that have sold recently and are currently for sale. Using that information, we can determine the market value of your home based upon market conditions.