INDEX

SR.NO Name of the Chapter Page No.

1 Introduction

2. Company profile

3. Review of Literature

4. Objectives of Study

5. Scope of Study

6. Research Methodology

7. Data Analysis and

Interpretation

8. Findings

9. Conclusion

10. Suggestion And

Recommendation

11. Bibliography
 CHAPTER -1
INTRODUCTION
INTRODUCTION

The real estate market is a dynamic entity that changes with time. Understanding the current
state of the market is the first step in formulating your pricing strategy. Understanding the
real estate market requires a thorough understanding of market analysis. It entails researching
the most current prices at which comparable properties in your neighborhood have sold. This
provides you with an approximate idea of what buyers are ready to spend on a house like
yours. The real estate market is influenced by various things. These include the state of the
economy, interest rates, and the demand and supply for real estate. You may forecast future
market trends and price your property appropriately by being aware of these elements.
Pricing strategies can be defined in a very simplistic way to a set approach used by businesses
to set prices for their products or services to achieve specific goals, such profit maximization.
To decide how to market and price your products, you need a pricing strategy. Naturally,
there are a lot of different pricing strategies. We have explained the main ones, which can be
used as a guide for pricing your products.
Sales volume is the total quantity of products that a business sells in a certain time frame. An
organization’s sales and marketing strategies could be efficient if there is a significant
volume of sales. Along with revenue, many sales managers also regularly track sales volume.
Sales volume measures how many products you are selling, whereas revenue measures the
amount of income going into a business.

Knowing sales volume enables you to evaluate the aspects of your sales team, track the
effectiveness of your marketing effort, and gain additional insight into the position of your
products. You’ll see clearly which products are performing the most, which require more
marketing effort, and which need to be completely removed from your portfolio.

The psychology of Real estate pricing strategy

The psychology of pricing plays a significant role in real estate. It’s not just about the
numbers but about how they are perceived. Let’s delve into some psychology pricing
strategy that can influence a buyer’s decision.

The Power of Four and Seven

The numbers four and seven have a unique power in pricing. For instance, pricing a property Rs
247,000 instead of Rs .250,000 can make the price seem significantly lower to a buyer. This is known
as the “Right Side Digit Effect,” where prices ending in lower digits appear as better discounts.
The Rs. 19,000 syndromes

This is a common pricing strategy used in retail and can also be applied to real estate. Instead of
pricing a property at a round number, you price it slightly lower. So instead of listing a property for
Rs20,000 you might list it for Rs.19,000. This strategy can make the price seem lower than it is.

Writing the pricing without commas

Another psychological trick is to write out the price without commas. For example, a price of
Rs1,400,000 might be written as Rs1400000. This can make the price seem lower to the buyer.

Importance of pricing strategy in real estate

It is critical for both buyers and sellers to comprehend the significance of pricing strategy in
the real estate market. Since price directly affects market value and ultimately decides the
success of a transaction, it can make or break a property sale.
 A comprehensive understanding of market dynamics is necessary when setting a
property's price. Numerous factors, including geography, supply and demand, the
state of the economy, and interest rates, have an impact on real estate markets.
 Real estate agents utilize a CMA as a crucial tool to ascertain a property's fair market
value. It entails contrasting comparable homes that are for sale or have recently sold
in the same neighbourhood.
 Depending on their objectives and the state of the market, sellers can use one of the
following pricings strategies.
1. Competitive Pricing
2. Premium Pricing
3. Value-based Pricing

6 ways of pricing strategy in real estate

1. Start with a free online home value estimate.

2. Look to comparable sales for guidance.

3. Use the real estate pricing pyramid.

4. Adjust for online pricing benchmarks.

5. Follow the seasonal shifts of market.

6. See what a cash buyer would pay.

Pricing Strategies when writing an offer on Real Estate

  Offer well below the list price

Usually frequently like to include an “odds prediction" in my offer writing for clients. For
instance, I might advise the customer that their chances of getting the house are between 0%
and 20% if they wish to write an offer that is excessively low.

 Offer just below the list price

Buyer clients are prone to think that houses that have been listed for 30 days without any
offers are overpriced. There might be a chance in this case to secure the property with an
offer that is less than the list price. If the seller has previously been under contract and the
buyer failed to properly close escrow, the buyer may also make a lower offer than the list
price.

 Writ a full price offer

When the house is first listed, it's one of the greatest moments to write a full price offer. This
is especially true if there is any distress associated with the listing. In situations where the
property is listed but not yet on the market, making a full price offer can also be successful.
There is a strong incentive for the seller to accept when the customer offers them the entire
price because many vendors enjoy "off market" sales.

 Write an offer just above the list price

On average to below average homes may stay on the market for a long time, but good
properties still receive many offers. The demand for a specific home must be understood in
order to decide how much to offer on a purchase agreement. There have been times recently
when almost all offers were written above the list price, and there are situations where doing
so is appropriate.

 Write offer well above list price

There's a good chance a buyer buying a house in the neighborhood will write an offer far
beyond the asking price. I mean perhaps hundreds of thousands above when I say "well
above." Even while overbidding has decreased over the last 24 months, there are still
instances where purchasers offer more than Rs. 95,00,000 for a home that is listed at Rs.
80,000,000. Since the purchasers in this instance had so much money set aside for the down
payment, any shortfall in the assessment is compensated for with extra funds.
COMPANY PROFILE IN KALYAN-BHIWANDI
REGION
 1. ARIHANT

Arihant Enterprises includes ARIHANT CITY Project. Since starting its primary operation in
2005, the group has effectively finished 11 projects totaling approximately 10 lac square feet
of construction in Thane and Bhiwandi. Due to its status as the largest Township project and
a notable landmark in the area, the project has garnered attention locally.
It is lying across a huge 40-acre plot of land with many stages and all the amenities.
Currently, more than 1,200 families reside in the city. The company's focus is not just on
building buildings; all aspects of construction and client needs are considered, and
adjustments are made if mistakes have occurred during previous projects.
The city is well-planned, with ample parking, well-designed roadways, a gym, a swimming
pool, and more than eighteen attractions.
Phase 1, Phase 2, and Phase 3 distances from one another to ensure proper maintenance
throughout the city. Every phase is masterfully constructed, featuring ample parking for cars
as well as a play area for kids.

2.

Established in 1990, Godrej Properties is the first real estate company to have ISO
certification. The company is currently developing landmark projects in 12 cities across
India covering over 18.58 million square meters. Godrej Properties is known to bring
innovation and excellence to the real estate industry. With Majhi Wada Junction 20 mins
away, the upcoming Metro Line 5* at walking distance, Godrej Nirvaan is the perfect
 home in terms of connectivity. With a host of upcoming infrastructure such. A building
laden with 50 + cosmopolitan amenities, 60+ 24/7 concierge services and accessibility to
business hubs to provide stability to a life on the fast lane.

3.

Established in 1994, Mahindra Life space Developers Ltd. (Mahindra Life spaces) brings
the Mahindra Groups philosophy of Rise to India’s real estate and infrastructure industry
through thriving residential communities and enabling business ecosystems. The
Company’s development footprint spans 27.4 million sq. ft. (2.5 million sq. m.) of
completed, ongoing and forthcoming residential projects across seven Indian cities; and
over 5000 acres of ongoing and forthcoming projects under development/management at
its integrated developments/industrial clusters across four locations.
Mahindra Happiest Launching 1 & 2 BHK Home At 39.6 Lacs (All Incl.) Ready To
Move In Home At Kalyan. Evolve into your healthiest self with homes that enable overall
well-being at Mahindra Happiest Kalyan - 2, India’s first Health Sampanna homes. The
thoughtful designs and distinct amenities take care of all the aspects of your health,
whether social, mental, or physical, to craft a life of complete health for you and your
family. Being Health Sampanna means all the aspects of your health are well taken care
of. Homes at Mahindra Happiest Kalyan - 2 help develop your physical health, boost your
mental health and improve your social health so that you and your family can lead a
Health Sampanna life
The Mahindra Happiest Kalyan location is at the heart of all major hubs and
conveniences. You will find the best of healthcare, education, entertainment, and more
just a few minutes away from the Mahindra Happiest Kalyan address so you wont have to
venture too far from home.
 4.

Ornate Universal is a leading real estate entity synonymous with ethics, professionalism, and
a customer-centric approach. Established in 2010, Ornate Universal has already developed
more than half a million sq ft of living space. The portfolio of property by Ornate Universal
includes several residential projects in Mumbai. Unique Selling Point The group prides itself
on having an efficient quality management system for all its residential and commercial
properties.
It is lying across a huge, small acre plot of land with many stages and all the amenities.
Currently, more than families reside in the city. The company's focus is not just on building
buildings; all aspects of construction and client needs are considered, and adjustments are
made if mistakes have occurred during previous projects.
The city is well-planned, with ample parking, well-designed roadways, a gym, a swimming
pool, and more than eighteen attractions.
Phase 1, Phase 2, distances from one another to ensure proper maintenance throughout the
city. Every phase is masterfully constructed, featuring ample parking for cars as well as a
play area for kids.
REVIEW AND LITERATURE
REVIEW AND LITERATURE

Pricing strategies in real estate play a pivotal role in determining the success of property
transactions. Here's a review and summary of the literature.

1. Hong Nguyen Thi Bich (2020): The aim of to measure the dynamic effects of listing
price strategies and housing features on the probability of selling a house over the
marketing period by adopting a two-stage regression analysis. In the first stage, we
define the listing price strategies as the gaps between the actual listing price and
expected selling price, estimated by a hedonic model. The Cox Probability Hazard
models are applied in the second stage to measure the effects of listing price strategies
on the probability of sales over various listing periods, such as 30-day, 90-day, 180-
day and 270-day listing periods. We find that overpriced listing strategies have a
significant impact on the probability of sale at any point during the first 30 days of
marketing time. This effect seems to diminish and disappear after six months of
marketing time. This shows that the first 30 days of the marketing time are critical and
housing liquidity is strongly affected by pricing strategies. When the time on market
is over 30 days, the influence of the seller’s pricing decisions on housing liquidity is
diminished.
2. Norm G Miller, Michael A. Sklarz (1987) : Research on many consumer goods has
indicated that pricing strategies may influence perceptions of quality. Whether such
perceptions exist for large assets like real estate, which may therefore allow strategies
to influence selling prices is the subject of this study. Large high-rise centrally located
condominium data is used to test whether asking prices are an indicator of value to
buyers.
3. Filip Gustavsson and Simon Vahtola (2020) : Earlier studies examining house
pricing have mainly focused on the secondary market and have often overlooked the
primary market and newly produced housing units. This paper studies the pricing
strategies in the primary housing market, as that segment differs from the secondary
market. By using data from one newly produced housing project, we can exclude a
number of project-specific factors, as they are nearly identical for all observations.
 This allows us to focus on factors that are directly observable and require very little
assessment or evaluation in our estimations of list prices, selling prices and selling
times. The empirical results exhibit a close relationship between list- and selling
prices, but a few factors differ significantly between the two. Such differences could
indicate a misinterpretation of the market by the seller. The time-on-market model
shows that a number of factors affect selling times as well. The results indicate a
relationship between “mispriced” factors and their impact on the selling times, where
“over-priced” factors seem to prolong the time-on-market and “underpriced” factors
seem to shorten the time-on-market. By dividing the units into different price ranges,
it becomes clear that high-priced housing is more difficult to price and takes longer to
sell. This relationship is strengthened by a degree of overpricing variable, which
exhibits a positive sign in the time-on-market model. The effect is the strongest in
low-priced units and not significant for higher-priced units. Other factors that affect
pricing strategies require a broader discussion. Analogies from similar consumer good
markets indicate that pricing strategies are dependent on the types of customers in the
target groups as well as the stage in the project life cycle.

4. Eric Cardella, Michael J. Seiler (2016): When selling a home, an important decision
facing the homeowner is choosing an optimal listing price. This decision will depend
in large part on how the chosen list price impacts the post negotiation final sale price
of the home. In this study, we design an experiment that enables us to identify how
different types of common list price strategies affect housing negotiations.
Specifically, we examine how rounded, just below, and precise list prices impact the
negotiation behavior of the buyer and seller and, ultimately, the final sale price of the
home. Our results indicate that the initial list price strategy does play an important
role in the negotiation process. Most notably, a high precise price generates the
highest final sale price, smallest percentage discount off the list price, and the largest
fraction of the surplus to the seller, while just below pricing leads to the lowest final
price, largest percentage discount, and smallest fraction of the surplus to the seller.
This pattern seems to be largely driven by sellers making persistently higher and more
precise counteroffers throughout the negotiation process when the initial list price is
high precise. Interestingly, these effects generally attenuate with negotiating
experience. Importantly, our experimental results are generally consistent, both in
direction and magnitude, with the limited transactions-based empirical studies relating
to real estate listing prices.

OBJECTIVES OF STUDY
OBJECTIVES

 To study the well-known product of real estate in Kalyan-Bhiwandi region

 To identify the factors affecting the pricing in Real Estate.

 To study the customers level of satisfaction about Pricing in Real estate Property.

 To find out the various issues, if any, faced by the customer in Market Conditions.

 To know the type of products purchased by customer through various aspects.

 To identify the most contributing factor affecting overall satisfaction of Pricing in

real estate.

 To identify the factors influencing customer to buy Property in Various pricing

strategy

SCOPE OF STUDY

The scope of study in pricing strategy in real estate is broad and encompasses various aspects
of the pricing process, market dynamics, consumer behavior, and economic factors. Here are
some key areas within this scope.

 Understanding market trends, supply and demand dynamics, and local market
conditions is essential for devising effective pricing strategies.
 Studying different pricing models and methodologies used in real estate, such as
comparative market analysis (CMA), cost-based pricing, income approach, and
hedonic pricing models.
 Investigating consumer preferences, perceptions of value, and decision-making
processes related to property purchases.
 Examining the psychological principles behind pricing strategies and their impact on
buyer perceptions.
  Investigating the concept of dynamic pricing and its application in real estate. This
includes studying pricing strategies that adapt to changes in market conditions,
seasonality, and buyer behavior, as well as the implications for seller profitability and
market efficiency.
 Comparing pricing strategies and market dynamics across different regions and
countries.

LIMITATIONS
While pricing strategies in real estate are essential for facilitating transactions and optimizing
outcomes for buyers and sellers, they are also subject to several limitations. Some of the key
limitations include.
 Real estate markets can be highly volatile and subject to fluctuations in supply,
demand, interest rates, and economic conditions.
 Pricing decisions rely on available information about comparable properties, market
trends, and buyer preferences.
 Pricing in real estate involves subjective judgments based on factors such as property
condition, location, amenities, and perceived value.
 Pricing strategies may be influenced by external factors beyond the control of sellers
or agents, such as regulatory changes, zoning restrictions, environmental concerns, or
unforeseen events.
 Emotions can play a significant role in pricing decisions, both for sellers and buyers.
 Pricing a property too high or too low can influence market perceptions and buyer
behavior.
 Pricing strategies may not fully account for transaction costs associated with buying
or selling real estate, such as closing costs, taxes, fees, and financing expenses.
 Real estate assets are relatively illiquid compared to other investment vehicles, such
as stocks or bonds.

Despite these limitations, pricing strategies remain essential tools for navigating the
complexities of the real estate market and optimizing outcomes for buyers, sellers, and other
stakeholders.
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY

It is defined as a highly intellectual human endeavor that is applied to the study of matter and
nature and is particularly concerned with the methods of data collection, analysis, and
interpretation. A framework of guidelines, practices, and methods for determining a research
problem's outcome

TYPES OF RESEARCH

Primary research
Methods to collect it can include interviews, surveys, observations, or any type of research
that you go out and collect yourself.

Secondary research
Secondary research is an important tool for gathering information already collected and
analyzed by others.

Method of the study:

The research process involves gathering information and applying it to an analysis of a
selected subject. In summary, the aim is to report the findings of a specific study. I got the
data from the survey, which is based on several Pricing strategy of real estate in Kalyan-
Bhiwandi , as well as some data gathered from publications including research papers,
journals, and data sets.

Data collection methodology:

I had done Survey questionnaire as part of the data gathering process for the study on the real
estate sector of Kalyan-Bhiwandi region. To get qualitative data, we will give our chosen
participant a prepared questionnaire with questions regarding selling houses on average, how
they use the media and internet to sell houses, and their relationships with clients and channel
partners. To obtain more profound understanding of real estate sales strategy, we conducted
qualitative study on respondents. To verify the accuracy of participant responses, these talks
took place over the phone during the interview. This method made it possible to collect
qualitative information that gave researchers an in-depth understanding of Arihant Real
Estate Sales Strategy.

Data presentation, Data analysis and interpretation:

I obtained some responses to the questions through qualitative research, and I had a
questionnaire survey on pricing strategies in Real estate with special emphasis on Kalyan-
Bhiwandi region.

1. Occupation

Above show percentage wise analysis of the data in respect of the occupation in which 34.2%
of the respondents were service and 39.5% of respondent were business, 23.7% Employee

2. To know the product of Real estate

Above it shows the percentage wise analysis of the percent wise analysis of the data in which
31.6% of the respondent as they friends suggest, 15.8% of the respondents on word of
mouth ,23.7% of the respondents preferred Hoardings and 28.9% were has family member
suggestions.

3. Do you often buy this product?

Above it shows the percentage wise analysis of the percent wise analysis of the data in which
47.4% of the respondent as they do as per the Residential, 23.7% of the respondents on
market conditions related ,13.2% of the respondents preferred commercial and 15.8% were
has on Investment.

4. What price would you pay to buy the product today?

Above it shows the percentage wise analysis of the percent wise analysis of the data in which
36.8 % of the respondent as they do as per property size and feature, 23.7% of the
respondents on Locations ,21.1% of the respondents preferred Property type and 15.8% were
has on Market conditions

5. If the product’s price were X, would you consider buying it?

Above it shows the percentage wise analysis of the percent wise analysis of the data in which
34.2% of the respondent as they do as per the personal preference, 31.6% of the respondents
on market Affordability ,21.1% of the respondents preferred on market value.

6. Are you more inclined to make this purchase from a specific retailer or platform?
Above it shows the percentage wise analysis of the percent wise analysis of the data in which
39.5% of the respondent as they experience on agency, 21.1% of the respondents on Listing
market ,34.2% of the respondents on trustworthy agency.

7. At what point would the price be so low that you would question its quality?

Above it shows the percentage wise analysis of the percent wise analysis of the data in which
31.6% of the respondent on property conditions, 21.1% of the respondents on sellers
motivation ,26.3% of the respondents on market trend, 10.5% of the respondent on History of
the property.

8. In Kalyan Bhiwandi region which property you purchase according to the price
Above it shows the percentage wise analysis of the percent wise analysis of the data in which
37.1% of the respondent as on property of Mahindra Life spaces, 17.1% of the respondents
on property of Ornate Rise ,20% of the respondents Arihant Pvt ltd, 25.7% of the respondent
on property Goorej nirvana.

9. Are you more likely to purchase if discounts or promotions are offered?

Above it shows the percentage wise analysis of the percent wise analysis of the data in which
52.6% of the respondent as the type of promotion, 13.2% of the respondents on Timing which
happens ,28.9% of the respondents on value of discount.

10. How familiar are you with the prices of similar products/services offered by
competitors?
Above it shows the percentage wise analysis of the percent wise analysis of the data in which
52.6% of the respondent as they search on local market, 21.1% of the respondents on
Networking ,21.1% of the respondents on online listings.

11. How do the prices of this compare to those of competitors?

Above it shows the percentage wise analysis of the percent wise analysis of the data in which
29.7% of the respondent on reviewing historical sales data, 40.5% of the respondents on
Evaluating property features, 29.7% of the respondents on considering market trends.
FINDINGS:

 Most of the participants in this research effort in the Kalyan-Bhiwandi region

provided information on how different strategies affect real estate property pricing
most efficiently.
 Most individuals in that area may be knowledgeable about a variety of property-
related topics, such as hoarding and family members.
 Frequently, when purchasing real estate, it can be easily to choose which
configuration is appropriate for a residential or investment purpose on that region.
 In that region most of the respondent mast epically buy the product based on location,
property type.
 As competitor in that region pricing strategy may strategist on the way of
affordability, market value, rate of interest and future potential
 When a product's quality results in a low price, there are a number of elements to take
into account.
 According to the customer which they may not find brand of the product they may
consider various discount, promotion type, negotiation ,0% registration and stamp
duty to make an affordable and, measurable to buy.
  As compared to the property on that region which may find which is best offer to buy
on that basis to make an convenient of the product.

CONCLUSION:
In summary, developing a real estate pricing plan is a complex process that calls for careful
assessment of the characteristics of the property, the preferences of the target market, and
market dynamics. Since diverse properties and markets require different solutions, there is no
one-size-fits-all approach. But whether the goal is to maximize profit from a luxury listing or
sell a house fast at a competitive price, a well-executed pricing strategy may have a big
impact on the outcome of a real estate transaction.
Performing in-depth market research, examining similar properties, comprehending the
preferences of buyers or renters, and adjusting for shifting market conditions are all important
factors to consider when developing a pricing plan. Furthermore, the utilization of
psychological concepts like perceived value and pricing cues can impact consumer behavior
and improve the efficacy of pricing tactics.
In the end, a good pricing plan strikes a compromise between the desire to maximize profits
for developers or property owners and the necessity to draw in customers or tenants. Real
estate professionals can maximize pricing selections and accomplish their goals by utilizing a
customized strategy that fits the particulars of the property and the dynamics of the local
market.

SUGGESTION AND RECOMMENDATION:

Certainly! Here are some suggestions and recommendations for pricing strategies in real
estate:
 Determine a competitive pricing range for the property by carefully examining recent
sales data and market trends. This comparative market analysis (CMA) is the first step
toward determining a fair listing price.
 Remain adaptable and ready to modify pricing plans in response to input from
prospective purchasers, modifications to the market, or the success of comparable
listings. You may optimize pricing to boost interest and offers by being flexible.
 Determine and highlight the property's special qualities and value propositions that set
it apart from competitors in the market. Emphasizing these features can draw in
 customers looking for particular features or amenities while also helping to justify a
higher price.
 Utilize data analytics software and technologies to learn more about consumer
behavior, price trends, and market demand. Pricing choices and strategy efficacy can
be improved by platforms that offer predictive analytics and real-time market data.
 Adapt your marketing strategies to speak to the people who will be most interested in
the property. To appeal to various consumer segments, divide your target market into
segments based on their interests, shopping patterns, and demographics. Then, modify
your pricing methods accordingly.
 Always keep an eye on the listing’s performance, keeping track of queries, showings,
and accepted offers. Assess the pricing strategy's efficacy and be prepared to modify
it as necessary to get the intended result.
 Keep lines of communication open and clear with prospective purchasers about the
reasons behind pricing, the state of the market, and any revisions made to the listed
price. Developing credibility and trust can help to ease negotiations and result in
profitable deals.