For whatever reason, most of us are aware of “Pi”.
Mostly we just think of it as that number that goes on and on forever, with no end or solution. And we just know it as 3.14.
When and why do we learn about it in life? What good does it ever do us?
There’s certainly a lot more to it…
For instance, it’s a “constant” ratio in circles. And, it’s an “irrational” number. They teach us that, too. Maybe that stuff sticks with us. Maybe not.
For most of us, just knowing the 3.14 part is good enough. There’s no need to think about it much beyond that. Pi probably isn’t going to affect you or me one way or another in life…
But…there is a rather “constant” and “irrational” number in property that does affect many people. And most people never learn about it in life…at least until they want to put their home up for sale.
That number is the marketing price of a home…
It’s a “constant” in the sense that almost every homeowner wants the marketing price of their home to be a much bigger number than it should be.
It is also a “constant” thing that estate agents have to help clients understand, and even come to terms with.
But many homeowners disregard what 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, proper marketing prices for homes are not unsolvable. There’s a rational number for every individual home on the market.
No, it isn’t necessarily easy to figure out. But it doesn’t take a mathematician. It takes an estate agent who knows how to analyse where the house should be priced and positioned within the current market. And, it takes an agent who knows how to explain it well, so that their client doesn’t decide to go on for too high of a price.
Not all agents can or do these things well. Which is why “irrational” pricing is a “constant” problem so many owners struggle with.
When selling your home, it’s important to find an agent who prices homes perfectly. Not too high… but also, not too low. It’s a fine balance that needs to be struck.
So, when it comes time to put your home up for sale, it’s important that you or your agent finds, and understands, the most rational number to list your home for on the market.