Cohousing-L Mailing List: Differential pricing

[Mike Malone (mike]

We at MoCoCo* did use differential pricing and find that it did work 
fairly well. We do not have standardized units, so part of the 
difference is size and design.  All of our units have some sort of value adjustm
ent
 for siting built in. For example, our site is also on top of a glacial moraine 
and 
some sites look over an attractive wooded slope. We assigned a higher base price
 to these sites.  Our primary motivation for doing this was to 
finance the new development and rehab of the existing building ("The 
Mansion"). By charging more for some sites we were able have those 
members with more financial resources pay for a larger share of the 
development and get some additional value without any community outlay 
of money (pure profit). As a result we have some very inexpensive 
units. The danger in this process is that a hierarchy based on 
financial ability can be created. So far this has not happened, but 
we are still young.

* MoCoCo is Monterey CoHousing Community in St. Louis Park, MN.


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Mike Malone
Cancer Control Section
Minnesota Department of Health
Internet address:  michael.malone [at] health.state.mn.us
Phone: (612)623-5670
Fax: (612)623-5520
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