RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
RISMedia
No Result
View All Result

Study Reveals Best Technique for Pricing a Home

Home Best Practices
August 16, 2016
Reading Time: 2 mins read
Study Reveals Best Technique for Pricing a Home

Female Realtor Showing Mature Couple Around New Home

The best technique for pricing a home when listing it for sale is setting the asking price just below a round number, according to recent research published by the Journal of Housing Research – an official publication of the American Real Estate Society (ARES).

“These findings will help real estate brokers and sellers of homes develop more informed listing and marketing strategies to better suit sellers’ needs,” said Ken Johnson, Ph.D., ARES publication director, real estate economist at Florida Atlantic University’s College of Business and co-developer of the Beracha, Hardin and Johnson Buy vs. Rent Index. “The results of this study take a lot of guess work out of the marketing of homes for real estate brokers.”

The study looked at 1,000 buyers in Virginia considering a pool of more than 370,000 listings. The researchers were able to determine the impact of “rounded pricing” listing strategies versus “just below pricing” listing strategies.

“Our study suggests that by using the just below pricing strategy sellers can price their home slightly higher without driving away potential buyers,” says Eli Beracha, Ph.D., of Florida International University, who conducted the study with Michael J. Seiler, Ph.D., of The College of William & Mary. “As a result, they end up selling their house for more.”

How does dropping your asking price ever so slightly impact the final outcome?

“On average, buyers are more attracted to a house priced at $199,000 than to a house priced at $200,000 and it appears that ‘just below’ pricing works out favorably for sellers in terms of their bottom line,” Beracha explains. “Based on our research, the ‘just below’ pricing strategy yields a selling price that is, on average, roughly 2.5 to 3 percent higher, $5,000 to $6,000 on a $200,000 house, compared with a rounded pricing listing strategy.”

While residential real estate agents widely disagree on the appropriate pricing strategy to use when listing residential real estate for sale, the researchers found that homebuyers more often prefer homes priced using a “just below” pricing strategy. This preference allows sellers to list their home for a higher initial listing price.

On the other hand, due to the demand effect, rounded priced homes typically have shorter time on the market and a lower discount relative to listing price. Their findings suggest that sellers’ ability to set higher listing prices for properties using a “just below” pricing strategy outweighs the lower discount and shorter time on the market associated with similar rounded priced strategy homes.

“We tested the age-old debate concerning the best technique to price a home when listing it for sale,” Seiler says. “We find that using a price just below a round number works best, particularly in connection to the left-most digit in the price. So, $199,000 works better than $200,000.”

For more information, visit www.fau.edu.

ShareTweetShare

Related Posts

eXp Realty Names Lofty Preferred Solution Provider in New CRM of Choice Program
Industry News

eXp Realty Names Lofty Preferred Solution Provider in New CRM of Choice Program

July 1, 2025
NWMLS
Agents

NWMLS Accuses Compass of Demanding ‘Free Riding’ in Lawsuit Response

July 1, 2025
Engagement
Agents

More Face Time: 3 Ways to Boost Engagement With Selfie-Style Content

July 1, 2025
Fed Chair Blames Tariffs for Pause, Uncommitted on July Rate Cut
Economy

Fed Chair Blames Tariffs for Pause, Uncommitted on July Rate Cut

July 1, 2025
Real Estate Magazine
Agents

The July Issue of Real Estate Magazine Is Now Live

July 1, 2025
Forbes Global Properties Expands Italian Presence with Sicily’s Rizzotti Advisors
Industry News

Forbes Global Properties Expands Italian Presence with Sicily’s Rizzotti Advisors

July 1, 2025
Please login to join discussion
Tip of the Day

Growth, Strategy and Excellence: Transform Your Brokerage at RISMedia’s CEO Exchange

Join top brokers Sept. 3–5 in Washington, D.C. to exchange cutting-edge strategies, gain market insights, foster elite networking—and propel your brokerage toward profitable growth and lasting success. Register now.

Business Tip of the Day provided by

Recent Posts

  • eXp Realty Names Lofty Preferred Solution Provider in New CRM of Choice Program
  • NWMLS Accuses Compass of Demanding ‘Free Riding’ in Lawsuit Response
  • More Face Time: 3 Ways to Boost Engagement With Selfie-Style Content

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies ACE Marketing Technologies LLC

© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • Reports
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2025 Newsmakers
    • 2024 Newsmakers
    • 2023 Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2025 Power Broker
    • 2024 Power Broker
    • 2023 Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

X