When you're selling a home or property, pricing is of utmost importance. Sellers must price the property to attract buyers and offers. There are ways to maximize those opportunities, but a tiny pricing mistake can totally eliminate a large percentage of the compatible qualified buyers.
In the business of sales, many retailers use a pricing tactic to increase the appeal of the product to the consumer. That tactic includes rounding down to place the product into a lower pricing category. For example, a $20 item would be listed at a price of $19.99. Cars have neon numbers on windshields indicating a $34,999 price. You have seen it everywhere every day. It must be shown to work because it has become a standard practice. It's rare to find any item priced exactly on a whole number.
A homeowner may decide to price their home at $299,900 in an effort to keep it from having a dreaded 3 as the first number. Real estate searches are exact. For this example, compatible qualified buyers would typically be searching from $275K-$300K and others from $300K-$325K. A round price of $300,000 would be included in both searches. If the homeowner decides to cut that $100 off the list price, it would eliminate an entire group of compatible qualified buyers.
There is a lot of strategy when establishing a list price for a property. Pricing appropriately can draw more buyers and more offers, which will ultimately lead to stronger offers.