RE: Establishing unit pricing
From: David Heimann (heimannworld.std.com)
Date: Tue, 10 Jan 2006 21:40:07 -0800 (PST)
Hello,

With JP Cohousing, we originally had our project manager, Chris ScottHanson, establish the unit prices (such that the total revenue from all the units equaled our total costs). As we got towards final closings, it became apparent that we needed to readjust the prices, so we had Chris, a local real-estate broker who was familiar with the project, and a local cohousing maven get together to do the readjustment. While we did have a lot of animated discussions about pricing, it definitely helped that it was not any of our fellow cohousers and future neighbors who had set the prices, but rather professionals whom we trusted.

In the pricing considerations, square footage and number of rooms was only one of a number of factors. Others included which floor the unit was on (higher was pricier), whether it was near the noisy train tracks or the quiet alleyway, in which and in how many directions did light come in from, etc. Condo fees and voting interest were generally based on the unit prices (with a bit of adjustment for the affordable units).

We're all moved in now, and to my knowledge no one has complained post move-in about unfairness in the pricing.

P.S. -- We also left the choices of our exterior colors to the architect. Certain things, like colors and relative prices, were things we had seen cause tremendous issues elsewhere, so we left those to our professionals.

Regards,
David Heimann
Jamaica Plain Cohousing


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