The Great Space Debate: Is Volume-Based Pricing a Valid Means of Assessing Apartment Marketability or Merely an Alternative Method Falling Flat– Karla Weighs In
Imagine standing in the checkout line at a grocery store, contemplating the exact cubic footage of the food you are about to purchase before reaching the cashier. I mean, who really knows how many cubic feet are in a package of cheese?
Similar questions have been coming up over into the real estate world, with some brokers questioning the merits of the traditional methods of pricing properties. Some salespeople feel that relying solely on square footage for evaluating a space is not adequate when it comes to ultra-luxury listings. In these instances, some feel a volume approach towards pricing would be best when it comes to accurately evaluating distinguishing amenities, such as high ceilings.
Our Managing Partner, Karla Saladino believes this to be much ado about nothing. When broaching the subject with her landlord clients, Karla told the Observer “they literally laughed themselves to death.” She continued on to explain that the landlords “thought it was just more broker babble and ridiculousness,” she said.
There are so many components that go into determining the value of a listing. Basing calculations on something such as ceiling height without taking into consideration all of the other attributes, would be inaccurate, not truly reflecting the competitive pricing market.
Bottom line: Karla doesn’t believe buyers are going to fall for the hype when it comes to this alternative method of arriving at an appraisal. In the article, Karla describes that using volume is “like using the word ‘cozy.’ Clients will see right through it. It’s like listing in centimeters to get more numbers into my listing.”
To read more on what Karla had to say, check out the full article here.