The Friday WSJ is always a great treat for real estate geeks like me. One great article was written by Sanette Tanaka and it’s called “Do You Feel Lucky?” and no subscription is required for this one. I highly recommend it to everyone for a great weekend read.
The gist of it is: “In Vegas, home sellers love listings with 7’s, but in Asian neighborhoods, beware of 4’s (in Chinese culture, four is believed to bring bad luck). Pricing in residential real estate is purely a numbers game.” But it goes well beyond this, according to research done by Trulia.
“Numbers—and their placement—have a subconscious effect on buyers, too. People tend to look at digits on the left …… Prices with lower left-hand-side numbers give buyers the impression that they’re getting a better deal.”
There’s a neat interactive chart included as well to show where “lucky” strategies are employed. Tip of the hats to the folks at Trulia for developing this.
So what say you? Which pricing strategies do you find effective? Is the Asian and “Vegas” luck approach of value? Or is this just another real estate urban legend in the making?