[5-DayForum] Magic Numbers and Magic Endings

[Bill Effros]

Many people don't get what I mean by "Magic Numbers".  Several people
have offered wording to help.  Here's my latest attempt--let me know if
it resonates:

First divide the price you really think you can get at this time by 2
(to obtain 50% of what you really think you can get) (alternatively you
can multiply the price you really think you can get by .5 to obtain the
same number, if you are happier multiplying than dividing.)

Either way, you wind up with a number that is 50% of what you honestly
believe you can get at this time.  There is no danger in starting too
low.  You will get more responses with a "too low" starting price, but
the final bid will be as high or higher than you would get with a higher
starting price.  If you start "too high" you will fail to get 25
responses by Friday night, and you will have to rerun your 5-Day Sale
starting at a lower number on a subsequent weekend.

The last 5 digits of the starting price should be one of the 4 numbers
shown below -- the "magic endings" as someone has dubbed them.

$X24,500
$X49,500
$X74,500
$X99,500

With $X99,500 being the strongest of the 4.

Drop the number you will use in your ad to one of these 4 "magic endings".

If your home is worth less than $50,000, offer it for $19,500, $14,500,
$9,500 or $4,500--whichever one is 50% of what you think you can really
get at this time.  This is the only instance in which you don't use a
magic ending.

Again, there is no danger in starting "too low".  You will get more
responses, and at least 3 real buyers will show up, ready willing and
able to pay the highest price for your home at this time.  You do more
work when you start "too low", and having more real buyers will not
increase the final bid.  Your home is still worth only so much.

Always use a magic number with a magic ending.  Other starting prices
can work.  Magic numbers always work.  That's the "magic"!

Bill Effros