Updated about 1 month ago on . Most recent reply
Pricing Strategy Dilemma – Would Love Your Input!
Hey All,
Looking to get some feedback from fellow investors / realtors based on a real pricing decision I had to make recently.
I listed a fully renovated single-family home for sale in the Cleveland area.
Based on comps and condition, I estimate the property’s value to be in the $205K–$215K range.
I was torn between two pricing strategies:
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List at $199,900 – Just under the $200K psychological threshold, hoping to generate a lot of attention and create a bidding war.
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List at $209,900 or $210K – Target buyers who already crossed the $200K mental barrier and are more likely to know their max budget.
The home is renovated to a higher standard than most in the neighborhood, so I wasn’t sure if pricing it slightly low would attract bargain hunters, or if it would pull in serious buyers ready to compete.
What’s worked best for you in similar situations?
Also, do you think this type of pricing strategy would change in a different price range – say in the $300K or $400K range?
Would love to hear your thoughts and learn from your experience!
Thanks in advance,
Most Popular Reply
@Assaf Hazan I am going to go a bit unconventional, but have found this to work for our model. We flip 20-30 a year, and a big part of pricing strategy has almost nothing to do with previous sales comparables, but more whats on the market at the time of listing.
Buyers buy with their eyes, and when they are in the market, they will look for properties in the price range and location that suits their needs. We price our houses against what is on the market.
If our house shows better, we are pricing it way higher. If it shows average, we are pricing underneath everyone else to show better.
Ultimately, you are competing with all the houses currently on the market and not houses that have already sold.