The Power of Numbers
I read a white paper several years back that described the fact that there was a measurable difference in the sale prices of homes that had fewer zeros in the list price: as in $699,999 as opposed to $700,000. The basis was that the mind plays subtle tricks and the mind would think that the $699,999 was a more accurate number and not receive as large a counter offer as $700,000 would. That statistically, the final selling price of the $699,999 list price would be larger than the final selling price of the $700,00 list price. It was a small %, but still measurable and money in the bank.
Since then I have employed it in both buying and selling, setting list and offer prices with no zero’s. My faith based clients have used bible verses for ending numbers such as $XXX,316. One buyer, faced with multiple offers, used the date of the offer. In all cases, it seems to have worked, rarely have we lost a bid or not sold near asking when clients accepted my theory. My current listing (1321 117th Pl SE Kent) is listed at $676, 247 because it has 2 kitchens, 4 bathrooms & 7 bedrooms. We’ll see how that goes, but over a dozen shows in 2 days is a good sign!. Update -It is now Pending at Full Price.!!
What are your lucky number’s??
Historically low interest rates and changing lifestyles are contributing to the lowest number of homes for sale in the 23 counties that the NWMLS covers. With only 1.16 months supply of homes to buy at the end of June, buyers are once again faced with bidding wars and other market conditions that are generally in the sellers favor. As always, properly priced and properly presented homes are selling quick.
As one would expect, this imbalance in supply & demand is leading to rising prices. Pierce County lead the way in the Central Puget Sound region with a 8.2% year over year increase, with Snohomish County registering 6.7% & King County coming in at 5.9%. This is as expected as buyers are being pushed out to more affordable areas. Also trends which were emerging Pre COVID, like buyers seeking more space & / or less urban areas, seem to be accelerating in pace as workers & employers are finding that ‘work from home’ solutions, put in place for COVID, work long term as well.
The silver lining for buyers is record low interest rates, at an all time low of 3.07% (FreddieMac 30year fixed), has increased their purchasing power. For sellers, this translates into buyers paying more for their home, making this ‘a particularily good time to think about selling’.