While doing my daily MLS research, this morning, I noticed a new listing, that was priced very, very well. In fact it was priced "to good to be true". So I thought I best do a little more investigating on it. Well it turns out the list price was actually nothing more than a teaser. I think it's called "Drama pricing".
This is a one year old 2200 sq ft home that has a true market value of around $235,000. The listing price is $160,000! The REALTOR® only remarks disclose that this is NOT the real price but is being used to "catch your attention". Isn't that interesting? This is the first time I have seen this in my market, so I'm wondering if anyone has used this technique before?
It certainly "caught my attention" so it was effective in getting me to research the listing. I wonder how much it will sell for? Now as you may know, I use Range Pricing on my listings, so I too am looking to sell my listings for higher than the list price. But the "list price" is normally only about $10,000 less than what my properties comp out at.
I'm not sure how pricing a property 35% less than market value would work. Would it create a bidding war even though the market is so slow and Buyers are few and far between? Would it create havoc and bad will with my peers? Or would it work?
I don't know if you would get market value for it but I wonder how close you could get? One thing I do know is it did "catch my attention". I might just have to give this a try. Maybe I'll just price all my listings at $100,000 and throw them out there to see what happens. That would make a pretty good advertisement: "Come on down to Tutas Towne where ALL properties are priced at $100,000. Make us your best offer!"
I guess if nothing else it would create a buzz. And I like a good buzz. Oops…that didn't sound right. How about…I like excitement? That's better.
So what do you think? Should I give it a try? Have any of you guys used "Drama pricing" before? Inquiring minds need to know.
***Image compliments of Sally "WooHoo" Cheeseman.
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