500,000  because if a buyer is looking from 400,000 to 500,000 they will find it and if they are looking from 500,000 to 600,000 they will find it.  

Because most customers are searching via round numbers online I have switched a few years ago to capture their views. Someone looking in the $500K to $550K price range won't capture my great $499,999 home.

I'm a believer of old school method as silly as it seems.   List it at $499,900 since studies do show that the brain gives it a psychological edge above the $500,000 (more than just the economic $100 edge). 

Search fields are set up in round #s; So a listing at $500,000.00 will come up if someone searches $500-$550,000.00, but a listing at $499,900.00 won't come up in that search. But most agents know to search higher and lower, but do potential buyers know that? Probably most do.

All of my prices end with 944 and have since 1990.  For me it has worked well. So I can do $399,944 or $400,944

It seems to be that 500,000 is much smarter as it will come up in way more searches.

Praful,

Every marketplace is different, and it depends on that along.  One size does not fit all.

using the 199900 gets it below the 200k mark. where 200500 may not be in a search of someone looking up to 200. by going 199800 it may show up before all the 199900 homes. 

Based on your market research of active home buyers, you have first hand knowledge of the resources local buyers are using. You are also intimate with your local MLS, public facing search capabilities. What is the granularity available for homes prices in the most common tools?

Also, in your command is the home search strategy YOU engage for the buyers you work with. If they are comfortable at $500,000 what is the top end you enter for the search? $500,000? $510,000? Most will use a high list price of $530,000. Why? For negotiation opportunity or to 'watch' for increased motivation.

I have doubts of significant measure that any buyer trolling the internet for homes for sale will enter $499,999. Most will use the pull down or scroll and land on $500,000.

My advise would be, position the home so it is seen in both the 400 to 500 AND 500 to 600 brackets.

Your choice is a matter of personal choice. Many searches by buyers are in round numbers. 

Studies tend to indicate a preference for the $499,900 type of pricing when viewed by buyers.

personally will do bellow 500k , because some times you home will miss if searches at 500k, but thats just me, thanks have a great day

I like what you do, Praful.

I am still old style - ending with 900.

I use both.

Sellers prefer the 9's and I prefer the even numbers.

Lol I like this question.

Stores do this because it is psychologically more appealing and if the client is ok with it, why not? Any added edge helps.

Like Jeff, I like round numbers from $400K and above.  The lower end looks better at the $299,900.

Anything under $500,000.  $499,000 looks better than $500,000.  It's the mentalilty of what it looks like.  I do not remember off hand what site it was, but the search went to $499,999.  Anyone looking at home in the $500,000 range would miss out on that listing.  I would look at the different sites and their search criteria before making a final decision.

To some extent it depends on the price point. Pricing in the $200s is very different than something over a million. And depending on where buyers are searching there are different paramets - some sites provide only ranges, others allow you to set the range, or a minimum, or a maximum

Praful, I round up my numbers. We aren't kidding anyone with the 999 and this isn't retail pricing, as far as I'm concerned. Plus, people tend to search in round numbers. So if somethone starts searching at $500,000, wouldn't you hate losing them over a dollar?

I like round figures unless some sellers are intersted in numerology .

''The psychological effect of adding 99-cent to the dollar value works wonder for prices like $99.99, $89.99, $79.99, $69.99 and etc. The consumers analyze and conclude that the product hasn’t reached the next bracket [100, 90, 80, 70,] and think it is a steal. Manipulating the price to make it look like a bargain is a powerful psychological strategy used in marketing for the best ROI.

The 99-cent pricing strategy is dying out as consumers are becoming more immune to it from overuse. As consumers get smarter and more immune to the psychological effect of 99-cent, it is best to do psychological research and find the next best number.''

I personally like 500k, but they say that 499k sounds more attractive.

I'd love to see real buyers answer this question:)