Understanding your competitive set when pricing is obviously important. If youre constantly at low exposure, you can push pricing and ignore whatever comps are doing. But if your exposure ever goes up, youll want to make sure that youre not priced out of the market such that you cant reduce exposure.
In my experience, Ive seen two camps on how to approach this problem. The first tries to build the comparison from the ground up. We audit our community against the comp on a variety of thingsage, community amenities, unit size, unit type amenities (balconies, fireplaces, kitchen and bath finishes, etc.), and record these in (usually a large) spread sheet. $15 for a balcony, $3 for crown molding, $10 for a fireplace, . A lot of work, and a lot of alleged precision.Read More