Pricing a One-of-a-Kind Home in Savannah
How do you price a one-of-a-kind home in Savannah? It’s more complicated than just sticking a number on a home. A home has to be sold four times: to other agents, to their buyers, to the appraisers, and then to the lenders. The right price is the one that holds up with all four.
On this page
Some homes don’t have anything to compare them to. An architecturally significant home on almost an acre, in a historic part of town where lots that size aren’t readily available, is one of them. That makes it hard to price, and it’s more complicated than just sticking a number on a home.
A home has to be sold four times
A home has to be sold four times: to other agents, to their buyers, who are the smartest ones in the market, to the appraisers, and then to the lenders. Every price has to hold up with all four.
How I price a home with no easy comparables
We look at similar properties across markets for an idea, and we work through them together.
Testing the market
I’m willing to test and see what the market may or may not bear. The buyers are the most educated ones in the market. They will tell you.
On one historic home, my client wanted to price higher to test the market. My honest answer was that the market didn’t have enough to base it on, and I was concerned about the appraisal coming in low during the negotiations. We talked it through, and I explained each step of the process.
Testing the market means starting at a price and letting showings, feedback, and offers tell you where the market is. The key is deciding up front what you’ll watch and when you’d adjust, so a test doesn’t turn into a listing that sits.
Inspection vs. appraisal: what I watched for
After the home inspection, when the buyer’s agent mentioned that I wouldn’t want the inspection disclosed to future buyers, I knew the strategy behind it. I wasn’t worried about that inspection, because they were all normal things we had expected for a home of that age. My concern was that the appraisal could hurt the next transaction, and we adjusted our strategy accordingly.
Why the appraisal matters even after a buyer says yes
The home the buyer is buying is used as collateral for the bank. If the appraiser’s opinion of value represents a lower number, then the bank will only want to lend on what that appraisal value is. Sometimes, even a good appraisal may come in and the underwriter doesn’t like the appraisal or the loan and pushes back on the appraiser, so the appraiser has to consider the lender’s objections as well.
What happens if the appraisal comes in low
It doesn’t have to end the sale. The usual options are to renegotiate the price, have the buyer bring the difference in cash, meet somewhere in the middle, or ask the lender for a reconsideration of value with information the appraiser may not have had. If the buyer’s contract has an appraisal contingency, they may also be able to walk away. Which option makes sense depends on the home, the buyer, and how strong the rest of the offer is.
How to help your price hold up
For a one-of-a-kind home, the story matters. Have the improvements you’ve made, the home’s history and architecture, and anything that sets it apart written down and ready to share with the buyer’s agent and the appraiser. The more of that value someone can see, the better the price holds up with all four sales.
When emotion meets the numbers
Sometimes properties are purchased for emotional reasons that don’t make monetary sense. When you have a cash buyer, that works. If there’s a loan, sometimes it doesn’t, because the appraiser and the lender still have to agree with the price.
Let’s talk it through
If you have a one-of-a-kind home and you’re wondering what it might bring, I’m happy to talk it through. Call or text me at 912-378-3427.
Nikki Gergacs · Savannah Homes & Lifestyle · Next Move Real Estate · 912-378-3427
Wondering what your home might bring?
Let’s talk through where to price it, together.
