Haus Schwatz: Cati's DC Real Estate

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The Big Headache: How Do You Price the Odd-One-Out?

I may need some help here.

Yesterday, I showed a listing that is the biggest kid on the block, meaning, it's not only much bigger and sitting on a bigger lot than anything else in the neighborhood, but it's also unique and has features few of the homes around it share.  It's surrounded by National park land, was designed by a well-known architect, has an indoor pool and a bunch of other things.  Yet it fits very well into the landscape.

The list price is about two and a half times that of last year's average sales price in the neighborhood. 

Make no mistake--the price is justified by the trend of the neighborhood's values, by the neighborhood's typical sale price-to-tax assessment ratio, by relative (to the location) comparison to other unique and striking houses in the surrounding areas. We have approached this in every possible way and have come up with a price that objectively makes sense.

But--it's still more expensive than anything else that has sold here, and it always has been (at least for the previous two times it was on the market).

How much do buyers really care about that?  Or do they?  If they love the house and the location, how many of your clients would be bothered by the fact that, to approach their home, they will have to pass a bunch of more moderate and, perhaps, boring places??  How many of them who might love it will never consider looking at it for that reason?

Opening the floor.

© 2012, Catarina Bannier 

www.BannierHomes.com

www.DCHouseCat.com

www.DCHouseSmarts.com

     

Comment balloon 5 commentsCatarina Bannier • April 06 2011 03:15PM

Comments

That is a tough one - looking forward to reading the responses, but why member's only?

Posted by Virginia Hepp - Mesquite NV REALTOR, Mesquite NV Homes and Neighborhoods - Search MLS (ERA - Mesquite NV Homes For Sale) over 6 years ago

I have seen this phenomenon often and have even built homes with this dynamic in place. I once offered to paint and fix up a place that you had to pass to get the the 40 unit condo site I was building....The answer on what to do and how to proceed is different...but it is there and we will find it

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) over 6 years ago

Virginia -- I wasn't sure if that's a discussion I wanted to have with buyers...  but then again, they might find it valuable as well, or even have some input. 

Just made it public.  Thanks! :-)

Posted by Catarina Bannier, DC Real Estate The Smart And Fun Way (Evers & Co. Real Estate) over 6 years ago

Richie, I had to laugh out loud about offering to fix up that neighbor's place--know exactly what that feels like!  I've had a couple of townhouse listings with neglected (or horribly uglified) properties to their sides, which was very annoying.

How did the condos do in the end?  Worse than they would have at another site?

Posted by Catarina Bannier, DC Real Estate The Smart And Fun Way (Evers & Co. Real Estate) over 6 years ago

Catarina...We sold out because of my expert and most excellent marketing...I painted the dog looking front existing house and added wrought iron accents at no cost to the owner. Then, I landscaped the whole project lavishly creating a Garden of Eden with park benches, street lamps and state of the art playground facilities. My partners thought I was nuts. Every time we pre-sold 5 units, I bumped the prices up creating equity and urgency to purchase. In the end, the project sold out quicker and we made money by spending money correctly. The house we fixed up was even worth more...everybody wins

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) over 6 years ago

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