Pi and the Constant Math of Home Pricing

Most of us are aware of what “Pi” is.  We learned about it in school, probably in junior high, and then we forget much more than it’s that number that goes on and on forever, with no end or solution. And we just know it as 3.14.  There’s certainly a lot more to it though.

For instance, it’s a “constant” ratio in circles. And, it’s an “irrational” number. They teach us that, too. Maybe that stuff stuck with you.  Maybe not.  For me, just knowing the 3.14 part was good enough to get through school. There’s no need now to think about it much beyond that. Pi probably isn’t going to affect you or me one way or another in life.

But then again, there is a rather “constant” and sometimes “irrational” number in real estate that does affect many people. And most people never learn about it in life…at least until they list their home for sale.

That number is the listing price of a home.

It’s a “constant” in the sense that almost every homeowner wants the listing price of their home to be a much bigger number than it should be.  It’s a “constant” in the sense that most home buyers want it smaller than it should be.

It is also a “constant” thing that real estate agents have to help sellers understand, and even come to terms with.  But some homeowners disregard what real estate agents explain, and list their home for an “irrational” number, which is too high.

Which then creates an unsolvable problem (much like Pi is).

Listing a home for too high of a price, typically makes the process of selling a home go on, and on, and on. Forever. With no end…(also much like Pi is).

But, unlike Pi, the right listing prices for homes are not unsolvable. There’s a rational number to list every individual home for on the market.  No, it isn’t always easy to figure out sometimes. But it doesn’t take a degree in higher mathematics either.  You find it by analyzing market data and trends and applying them to your property.

Pricing your home “right” takes a real estate agent who knows how to collect, review and analyze the right market data to help a seller determine where the house should be priced and positioned within the current market.

And, maybe just as importantly, it takes an agent who knows how to explain it well, so that home sellers can understand the data and how it applies to their property, so they don’t decide to list for too high of a price.

Not all agents can do these things well. Which is why “irrational” pricing is a “constant” problem so many owners struggle with.

When selling your Lancaster County home, it’s important to price your home perfectly. Not too high… but also, not too low.  It’s a fine balance that needs to be struck and it’s important that you find, and understand, the most rational number to list your home for on the market.

Interested in knowing what the right price is for your home?  Now is your chance, if you want to take advantage of the Seller’s Market in Lancaster County, call me at 717-371-0557!