You’ve seen it everywhere:
$19.99 instead of $20.
$99 instead of $100.
Even cars are listed at strange prices like $23,560 or $49,870.
This pricing trick—called psychological pricing—has been used for decades in TV infomercials, retail, and the auto industry. So it’s no surprise the real estate world picked it up too.
At first glance, pricing a home at $199,999 instead of $200,000 might seem like a smart move. That “1” at the front just feels like a better deal than a “2”, right?
But when it comes to six-figure purchases, does a one-dollar difference really matter?
The Truth About Buyer Psychology in Real Estate
In most cases, no. A buyer won’t suddenly jump at a $99,999 house just because it’s “under” $100,000.
Unlike buying shoes or a late-night kitchen gadget, homebuyers aren’t making impulse purchases. They’re searching, filtering, and comparing—especially online.
Which leads us to the real reason why odd-number pricing can actually hurt your chances…
It’s Not Just Psychology. It’s Search Visibility.
Most home buyers today use online portals to house hunt. And while some of those sites used to offer predefined price ranges (like $100K–$150K), now most allow users to type in custom ranges.
And here’s what most buyers type:
$300,000 to $350,000
$200,000 to $250,000
$100,000 to $150,000
Very few buyers type in things like $199,999 to $249,999.
That means when you price your home at $199,999, you’re showing up in searches that end at $200K—but you’re completely invisible to anyone starting at $200K.
One dollar could be costing you hundreds of views, and with it, your chance at a bidding war.
Round Number Pricing = More Offers
That’s why I recommend my clients price in even numbers, especially in $5,000 or $10,000 increments.
It’s not just about looking clean or modern. It’s about making sure your home shows up in every relevant search window.
More visibility means more buyer interest. More interest creates competition. And competition drives prices above asking.
Bottom Line
Psychological pricing might work on impulse buys—but real estate is a different game.
In today’s digital market, pricing your home at an odd number could shrink your audience. And less exposure means fewer offers.
So if your home is sitting at $299,999 and activity has slowed… consider bumping it to an even $300,000. It might just open the door to an entirely new group of qualified buyers.
It’s the first step in my Smart Pricing Strategy, and it could make a five- or even six-figure difference in your final sales price.