Aspirational Pricing Methodology^TM

Aspirational Pricing Methodology (APM)^TM is a model that I created for my clients who have invested and improved their properties to the degree that there are limited comparable properties from which to use as a reference point in creating a list price. It is generally understood that returns on property improvements can vary, but sellers who have invested in luxury amenities want to define a period of time to attempt to identify a buyer who will pay significantly above median sales performance (>20%) in recognition of the value these improvements provide. These sellers typically verbalize an understanding that these improvements were made for personal enjoyment and lifestyle considerations, but do not believe that selling their home for median market performance is reasonable given the considerable investment that was made for the improvement. In fact, in my real estate practice, I have repeatedly demonstrated that buyers will pay far above median sales performance if the price of the property is supported by luxury amenities. Aspirational Pricing is listing a property at a number that is significantly above historical sales and is influenced by the property improvements.

Some examples of these types of improvements:

• Chef’s Kitchen with commercial grade appliances, pizza ovens and high-end counters, cabinets and backsplashes
• Spa Bathrooms with smart toilets, upgraded shower systems, spa tubs, extensive tiling, and custom vanities with upgraded counter tops
• Resort-Style Backyards with concrete pools and hot tubs, firepits, outdoor kitchens, and extensive landscaping
• Extensive lower-level finishes with daylight windows and doors
• Commercial grade wet-bars and wine storage systems

Clients who want more detail regarding APM further can look forward to a continued discussion that will include:

• A detailed analysis and presentation of historical sales, current market conditions, and local competition
• The impact that a national and international marketing platform has in exposing the property to a broad audience of potential buyers
• Other marketing strategies that are specific to identifying high-net worth buyers who are more likely to place value on the improvement
• Metrics that will be continually evaluated to provide direction for timing of and the amount of price adjustments
• Discussion about days on market and how that influences buyer perception

At the end of this discussion my clients will be prepared to intiate the sale process and will have the confidence to recognize a competitive offer when it is tendered.