Owning a home is one of the most important and strongest aspirations of a person’s life journey. Emotions are attached to a buyer’s decision to buy a real estate property. Touching the right chord could make or break his/her decision to go for a deal.
No doubt, price matters in decisions concerning real estate. And the importance of factoring in a buyer’s psychology for real estate pricing cannot be overlooked.
What is a good pricing strategy?
A good pricing strategy capitalises on the emotions/psychology that usually influence purchasing decisions of buyers.
- Images always invoke curiosity and interest from a buyer’s perspective. When they see something they like, they want to buy and own it. Use images that will make them want to own it.
- Value plays on a buyer’s mind than the actual figure itself. When they feel they are getting value for the hard earned money they would be shelling out, they feel inclined to choose that option. Especially if they feel they are getting more value for a lesser price, they will opt for it. Aim for the value aspect than the price aspect.
- Entice a buyer via a visit to the property. It should be set up and arranged such that he/she feels an emotional connect with the space.
Real estate pricing strategies
While it’s important to connect to the emotions of a buyer, correct pricing that would give a sense of value is equally important.
- For a bidding war you have to price smartly. If you under price and you don’t get an offer, it would be difficult to hike the price. Pricing too close to the actual value could also backfire. A buyer will think that the eventual price would be too high to afford.
- Do not price too low, as the risk of getting overlooked is higher. When other similar properties are selling for USD 1.5 million in the neighbourhood, pricing yours much lower than sends the wrong signals. Also it would not turn up in the searches of potential buyers who can afford the price.
- You can clinch a good deal if you price it above expected value or a bit above true value.
- Avoid overpricing as it may hamper your chance of getting potential offers. If your price seems above competition, buyers may not even consider your listing.
- It is best to price at market value.
- Set the price considering the seasonal shifts of the market. During certain seasons, there will be scope to make more profit on your listing. So capitalise on opportune moments.
- To highlight discounts, promos or price adjustments, highlight more zeroes to make it seem bigger. For example, USD 25,000.00 seems more appealing than USD 25,000.
- Keep some leeway for the negotiations from buyer which is inevitable in the real estate market.
An attractive property with the right pricing will create adequate buzz in the market, which will pave the way for offers pouring in. Real estate pricing strategies designed according to buyer psychology can help to avoid losses and delays in finalising a deal for your property.