'Just-below' pricing tactic a boon for house sellers
Washington
WE'VE all seen items advertised for just a tad less than the nearest round number - US$9.99 instead of US$10. Many of us would like to think we're too savvy to let that one-cent difference influence our buying decision. But research shows, over and over, that it does. This "just below" strategy (also known as "charm pricing") dates back at least 100 years, and its use is widespread.
Surprisingly, houses - the biggest purchase any of us makes - are no exception. A study published in August in the Journal of Real Estate Finance and Economics found that sellers who use the "just below" pricing strategy get more money for their homes than those who don't.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
China home sales slump 47% over May Day holiday vs 2023
China builder Vanke tells investors it readied money to pay bond
Swedish property group SBB's loss shrinks in Q1 and sees improving capital market
Consider housing policy tweaks to boost Singapore’s birth rate
HDB resale volumes recover in April as fewer BTO launches push demand to secondary market
More homes planned in Media Circle to support housing demand