What do you do when you are pricing a custom home and buyers and agents who aren't familiar with custom cannot grasp the difference in price per square foot?
It is easy to enter a production neighborhood and say that the price is $XYZ per square foot, but in custom land it is a little more complex than that. Build a custom home in an area that has older homes and the comparison is even more skewed.
So what is the home owner and the real estate professional supposed to do?
1. Set the price what the home will cost to reproduce and wait for the buyers to accept that is the cost?
2. Set the price at what the home would cost to reproduce and flex to the market?
3. Go off the comps that the area has and take the loss?
Is there a real right answer? I believe you give the client the information and your professional opinion and allow them to make their decision. The problem is that when the home is not closed in a specific amount of time it must be the fault of the Listing Agent. That seems to be the attitude that sellers often assume, regardless of the number of offers that have come in and amount of activity.
Best of luck selling and please use caution when quoting price per square foot with your buying clients.
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