Psychological factors influencing real estate prices

A lot of money is at stake when selling real estate. When six-figure sums change hands, there is a lot of potential there to make bigger profits or losses. Losses by selling your property below value. However, research has found that it is not just a matter of achieving the actual market value. There is even a chance to add one on top. A few tricks of psychology can help to secure a small bonus.

The 99 cent coin?

There has already been the joke in some films and series that the 99 cent coin should be introduced in the USA. Everything always costs $12.99 or $999.99. That would be more practical when paying. In Germany, this kind of pricing policy has also become common. Here, too, prices end in ninety-nine decimal points.

Similar effects could be observed with real estate. A house is easier to sell if it costs 669,000 euros and not 670,000 euros. Studies with A / B tests in various portals show that there is slightly more response in the real estate ads, although the difference is small. Apparently buyers have a psychological mark somewhere that they do not want to cross. Those who work with zeros, their prices are perceived as significantly higher on average.

Set precise prices

The Radebeul estate agent told us that precise prices can also be a useful strategy. That is, it is better to say 348,720 euros than 345,000 euros. The reason for this discrepancy is that round numbers make buyers feel more inclined to haggle. Round numbers with lots of zeros are common in the business world to set the basis for negotiation. A price that is expressed very precisely tends to sound as if someone has made a very precise calculation and set a certain limit. Especially when you make a counteroffer, such a figure signals: “I have a very precise budget and will not deviate from it by one cent.

Activate the buyer’s mental cinema

If a client is on site and looking at the property, there is an indirect way to activate them mentally. Talk as if the transaction has already been completed. Use phrases like “Where will you put the bed?” or “How do you want to use your garage?” etc. Subconsciously, the prospect will somehow feel at home.

If the opportunity arises, then snap numbers are a great help. Instead of 440,000 euros, just try 444,444 euros. In total, you will easily get 4,444 euros more this way. Liquor numbers seem to meet with broad acceptance among the population.

Cultural peculiarities

Some cultures or countries have special affinities with certain numbers. For the Chinese, 8 means luck. Therefore, it would be no surprise if a Chinese investor would buy a property from you for 888,888 euros. Even if you had given it away for 850,000 euros.