Price Spread of Units
From: Jasmine Gold (juturnaix.netcom.com)
Date: Mon, 12 Nov 2001 22:46:01 -0700 (MST)
The Coordinating Committee for Sonoma County Cohousing (Cotati,
California) is worried that there may be too big of a price spread in
our projected unit prices. We are wondering how other groups decided the
base price of their units (before individual lot premiums).

We are currently in the construction documents phase and have just had a
12% price increase in our projected prices. This price increase has
shifted some members from our largest (D) units that were filled up to
the middle units that still had spaces. We are also concerned that our
largest units are now overpriced. Here is our current price spread:

A 2 br/1 ba, 893 sf, $212,712
B 2+ br/1.5 ba, 1287 sf, $253,468
C 3 br/1.5 ba, 1294 sf, $300,365
D 4 br/3 ba, 1508 sf, $356,754

The B units were originally priced $40,000 below the C units because
they are on top of a commercial building on a busy street. This was
needed in order to sell them. With the price increases, the $40,000 got
increased and the higher price of the C's has made the B's more
attractive. The D units had $7000 added on to their original price for
being end units (and the $7000 also got increased with the price
increase).

Our price increase was set at a worse case scenario and now there is a
good chance that our prices are going to go down some. So, we're
wondering if we should be adjusting our price spread to bring down the
price of the D units more than the other units.

Any feedback on your prices and how you determined the price spread
would be appreciated.

--Jasmine
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