I read an interesting article by Lew Schelman in the November 4th National Mortgage News. He pointed out some interesting statistics and tidbits about how numbers correlate to certain home pricing strategies and some things to consider when coming up with the number to set a home’s sales price.
“Home sellers may not be afraid of certain numbers, at least not all of them. But according to Trulia, setting a price and “lucky” numbers go hand in hand.” Studying asking prices for homes since October 2011, Jed Kolko, Trulia’s chief economist, discovered that sales prices that end in 9 were the next most popular number after zero. 53% of all non-zero list prices on their site ended in 9. The next most common number was 5. Also, when home prices are reduced, they are more likely to have a 9 as the last number. When sellers are more eager to sell, the home price will also be more likely to have a 9.
When home prices were over $1,000,000, buyers are less likely to be influenced by the numbers game. Only 1 in 4 homes listed for $1,000,000 and up had a 9 as the last digit. The number 9 is also more popular in some markets, for example in up state New York. The number 4 is a number that can be unsettling in Chinese communities because the pronunciation of the number is similar to the word “death” in many Cantonese and Chinese dialects. On the flip side, the number 8 is “phonetically similar” to the words wealth or prosperity. The number 13 anywhere in the list price only appeared in the asking price of 13% of Trulia’s listings. In Nevada, lucky number 7 was more likely to be found in their listing numbers and the numbers 3 and 6 that represent positive and negative references in Christian numerology are more prevalent in a Bible Belt’s home prices.
So as an agent or a home seller, thinking about the numbers and their impact may be worthy of consideration in setting your sales price. Jed Kolko also wrote that “setting the right asking price for your home isn’t all science and it isn’t all art. Sellers and agents pick numbers to signal their strategy, and to appeal to the traditions and superstitions of local buyers.” Have you considered this when setting your selling prices?
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