Trying to sell a house? Try two prices.
A range can act as a reference price, inducing buyers to pay more than they otherwise would have.
There may be a smart psychological tactic for anxious home sellers: List a house with two prices. In Australia, it’s been the custom for sellers to do that, giving a minimum and a maximum asking price.
One advantage is obvious: Buyers scanning listings online usually set a minimum and maximum price….
Another advantage of this trick is simple confusion. Just about everyone knows that a listing price of $X typically signals that the seller is willing to accept a good deal less than $X. In this market, few sane buyers are going to offer list price. Having two prices upsets this comfortable strategy.
Most importantly, perhaps, the range can act like an advertised reference price. Discount stores will have price tags saying something like “$14.99 COMPARABLE VALUE OF $25.00.” Empirical studies and retail practice confirm that customers, even those who know better, are more likely to buy at $14.99 when reminded that they could be paying more elsewhere