Price
Can this price be explained?
Start with the terms that matter for this axis.
The seller’s proposed price. Treat it as a starting point, not a conclusion.
A completed transaction similar enough to help explain price differences.
A common price-per-area measure used to reduce the effect of size differences.
The part of a higher price supported by better location, tenancy, condition or usability.
Evidence that explains why the current price sits where it does.
Do not judge the number before you explain it.
Price analysis starts by asking why the subject sits above, below or inside the range of comparable transactions. A higher price can be reasonable when the property has real advantages; a lower price can reflect real weaknesses.
Can this price be explained?
The goal is not to guess one perfect number. It is to see whether the current price has enough support.
Understand the reason behind each check.
The point is not to memorize a checklist. Follow the questions and understand what each one prevents you from missing.
Is the asking price already the market price?
No. It is only the seller’s starting point.
No. It is only the seller’s starting point. This check keeps the price judgment tied to evidence instead of a first impression.
NextMove to the next check.
Is the nearest transaction always the best comparable?
No. Similar conditions matter more than distance alone.
No. Similar conditions matter more than distance alone. This check keeps the price judgment tied to evidence instead of a first impression.
NextMove to the next check.
How do you compare buildings of different sizes?
Use total price and unit price together.
Use total price and unit price together. This check keeps the price judgment tied to evidence instead of a first impression.
NextMove to the next check.
Does a 100 million won gap mean the subject is overpriced?
Not until you explain the condition gap.
Not until you explain the condition gap. This check keeps the price judgment tied to evidence instead of a first impression.
NextMove to the next check.
Is a premium always bad?
No. It is a problem only when the premium has weak support.
No. It is a problem only when the premium has weak support. This check keeps the price judgment tied to evidence instead of a first impression.
NextMove to the next check.
Why cross-check income during price analysis?
Because stronger operating income can support a higher price.
Because stronger operating income can support a higher price. This check keeps the price judgment tied to evidence instead of a first impression.
NextMove to the next check.
Do we end with one “correct” price?
No. We end with a supported price judgment, not a magic number.
No. We end with a supported price judgment, not a magic number. This check keeps the price judgment tied to evidence instead of a first impression.
The goal is not to guess one perfect number. It is to see whether the current price has enough support.
Once the reason is clear, the sequence is straightforward.
Record the asking price and hold judgment
Record the evidence before moving to the next step.
Select highly comparable completed transactions
Record the evidence before moving to the next step.
Compare total and unit prices together
Record the evidence before moving to the next step.
Explain price gaps with condition differences
Record the evidence before moving to the next step.
Check the evidence for any premium
Record the evidence before moving to the next step.
Cross-check whether income supports the price
Record the evidence before moving to the next step.
Conclude only within the PRICE axis
Record the evidence before moving to the next step.
Read a 1.5 billion won asking price through evidence.
This short case shows how evidence turns into an axis-specific judgment without pretending to make the whole purchase decision.
Is the asking price already the market price?
No. It is only the seller’s starting point.
Is the nearest transaction always the best comparable?
No. Similar conditions matter more than distance alone.
How do you compare buildings of different sizes?
Use total price and unit price together.
Does a 100 million won gap mean the subject is overpriced?
Not until you explain the condition gap.
Can this price be explained?
Price analysis ends with one question: “Can this price be explained?”
A good price analysis does not try to guess one exact number. It checks whether comparable evidence, condition differences and income support explain the current price.
Price analysis ends with one question: “Can this price be explained?”
A good price analysis does not try to guess one exact number. It checks whether comparable evidence, condition differences and income support explain the current price.
Evidence
Keep the evidence that supports the judgment visible.
Open questions
Do not hide what is still unknown.
Scope
Keep this axis separate from the overall purchase decision.
A good price analysis does not try to guess one exact number. It checks whether comparable evidence, condition differences and income support explain the current price.
NEXT · INCOMEMove to the next axis without carrying this conclusion over as the whole answer.
Educational guide only; not investment, appraisal or legal advice.