Rounded home pricing lead to faster sales!

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If the valuation of a property is not a simple exercise, setting a rounded price would be a boost to sell one’s estate, according to a US study.

Rounded Vs. Non-Rounded Prices

Indeed, the sale of a real estate is optimised when the selling price is rounded, while ads displaying a too precise number tend to discourage buyers, as underlined in the study. Furthermore, a precise figure may open room for negotiations (for example: if a house is for sale at Rs 2,545,800 then the price may be rounded to Rs 2,500,000 by the buyer).

On the other hand, round prices produce the opposite effect, they convey quality. First-time buyers would be less intimidated, while experts would be less tempted to negotiate lower prices.

A complex and incongruous price for a property, like Rs 3,540,425, would not look very serious and even spark suspicious.

How to sell your real estate?

“A dwelling is a special property, it is not carpets that are being sold”, according to Henry Buzy-Cazaux, president of the Institut du management des services immobiliers de France (Institute of Management of Real Estate Services of France). He considers that “sales requires an ambitious vision and elegance”.

According to Henry Buzy-Cazaux, it is therefore insightful to proceed progressively, step by step. If he recommends instalments ranging from 5,000 to 10,000 euros, thresholds up to Rs 50,000 for the Mauritian market may be considered.

Consider psychological thresholds

As mentioned above, it is possible to conduct a negotiation with a rounded price. However, by fixing the price of your property, be sure to respect a psychological threshold, underline French real estate professionals.

For example, for a price of Rs 500,000, it is better to display Rs 1,499,000 instead of Rs 1,501,000.

On the one hand, the buyer will estimate that the real estate is below the Rs 1,500,000, even if it is only a difference of Rs 1,000 (the psychological effect!). On the other hand, the ad will be received by Internet users who have created an e-mail alert - as it is done on lexpressproperty.com - concerning goods not exceeding Rs 1,500,000. Rather judicious, is not it?

What are the risks of rounding up the price of a property?

Does price rounding risky? Will the buyer be tempted to negotiate an even lower price? Henry Buzy-Cazaux reassures: "Generally, the buyer will acknowledge when the seller makes a significant effort on its price, and he will not negotiate furthermore”. For him, it is the duty of the real estate agent to make the buyer understand if there is still room for negotiation or not”.

Finally, even if you have to sacrifice a few thousand rupees to round up a price, this could be enough to conclude the sales.

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