Rental Price Psyschology
I am nearing completion of renovating my first rental and have the number of $2000 in my head for the my initial listing price. I am doing this for a few reasons.
1. My SFH will be the best available in my market (good school district strong middle/upper middle class)
-new kitchen, redone hardwood, 4bd 2.4 ba
2. Comps have ranged from $1800-$2000 for comparable properties.
3. I'd rather start high and work down in $25 increments than sell myself short
What I think will happen: Although I think $2000 is a fair price I believe there is a psychological resistance to that even round and perhaps large number. The reactions I've gotten from people when I'm discussing my plans have been a 50/50 mix of yes you'll get that easy or wow that seems high.
While I'm hoping to receive $2000 I believe the $25 drop to $1975 will generate a lot more interest.
Any thoughts?