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Jul 23, 2008 -- Oddball pricing strategy works in down real estate market

Selling a house is a turbo-challenge right now. Clark's mom recently put her condo on the market, and they discovered that figuring out price point was the most difficult part. Everyone's perplexed by that question these days. Figuring out price point is more of an art than a science.

Here's some advice: Don't look at comps from a year or 2 ago; look at today's comps when you price your home. Know that if you overprice, you'll likely get less in the end than those who price realistically upfront. You lose your initial marketing thrust when you overprice upfront. Listing your home at a realistic price will lead to less angst; a shorter time on the market; and possibly a better price.

Clark and Christa have a mutual friend who was selling her home last year. Clark advised the friend to price her home at a totally oddball figure, something that ended in $XXX,552.27, for example. Everyone laughed at him at the time.

Now financial writer Jonathan Clements reveals this pricing strategy actually works. When you throw out an oddball figure, people think 2 things: First, that it's a bargain. Second, that's there is carefully thought out reason behind it.

But whatever you do, do not overprice your home!


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What others are saying

  • Home Pricing to Sell
    Pricing at an oddball figure is a strategy taught to Realtors for years. Another point: When pricing a property, only look at comps for the past 6 months, as that is what the Buyer's Lender's appraiser will be considering.
  • comps
    we have had a townhome for sale for a year now...we relisted recently with duffy and priced it lower ...ending with 777, since then no bites (even showings) in the 3 months we listed it for that price, I am now going to offer the $777 as an extra for buyer agent above the standard 3% and hope it gets our place shown...A good site for comps is zillow.com and there are others you can get free comps from...i think realtor.com gives nieghborhood comps too
  • Real Estate Pricing
    Great advise. But if you're looking to purchase a bank foreclosure how do you know you're getting a good deal?
  • Pricing Home
    I agree with Clark 100 percent;
    but right now in my area, it is really hard to know what a comp is! My house was for sale for over a year, and most all the "comps" were bigger and newer. It turned out to be difficult to find a "realistic price" from the comps, and we overpriced as a result. Sometimes the "average" does not work. Based on my experience, it is best to pay for an appriasal.
  • pay off house or not?
    we have a 37k loan balance. Will keep at least another 4 years. 5% interest rate. Is it wise to just pay it off? or continue standard monthly payments; paying interest that gets a very nominal tax deduction at this point?

    House is currently 16 years old
  • How'd that work out?
    The oddball pricing... what was the end result?! :)

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