Housing Price Psychology

"A research team at Cornell University has found that people will pay more for a house if its listing price does not end in a bunch of zeros. In other words, the researchers say, you might make more money if you price your house at $425,425 rather than $426,000...The study concluded that because people are used to precise numbers for items that don't cost much and to round numbers for large amounts, consumers generally and home buyers specifically tend to perceive that a price is smaller if there are digits at the end instead of zeros."

Maybe Not a 000-Sum Game
by Sandra Fleishman
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/15/AR2008021501736.html