Pricing Strategy
What evidence will support the target price?
What evidence will support the target price?
Pricing Strategy is not a page for re-analyzing the property's fair value from scratch. It is the stage where existing analysis evidence is turned into an asking price and clear negotiation boundaries.
Comparable transactions, income, vacancy, and CAPEX evidence have already been gathered through ANALYSIS and Sale Preparation. Do not calculate them again here.
The asking price shown to the market, the target price you actually expect, and the minimum acceptable price can be different numbers.
If those three numbers are mixed together, the standard changes every time an inquiry arrives. Separate the public price from the internal decision limits.
Price is not the only negotiation lever. Define non-price terms too, such as closing date, handover timing, repair scope, and the range of documents to be provided.
The key is choosing which analysis evidence will be used to explain the price. From that evidence, build the asking-price, floor-price, and terms strategy.
What to confirm first in this step
Do not stop at what to look at. Connect each item to the evidence you will check and the next decision it supports.
Do not re-analyze comparable sales, current cash flow, vacancy, tenant structure, or CAPEX.
Separate the evidence already confirmed in ANALYSIS into items used directly in price explanation and items kept as supporting material.
The asking price is the number first shown to buyers.
It should be explainable from comparables and the property's condition, not set merely above or below nearby asking prices.
The target price is the internal outcome you hope to achieve through negotiation.
It may equal the asking price, but does not have to.
Keep the target separate even as inquiry response and deal terms change.
The minimum acceptable price is not for public display.
It is an internal floor based on the sale objective, expected net proceeds, taxes and debt, and alternative capital plans.
Record the rationale in advance so it does not shift emotionally during negotiation.
Identify terms that can change without reducing price—such as closing date, handover timing, minor repair scope, document scope, and scheduling—and terms that are difficult to change.
Do not cut the price immediately just because inquiries are low.
First check whether the underlying evidence actually changed through market response, new comparable transactions, vacancy changes, confirmed CAPEX, or due-diligence findings, then revisit the asking price, target, and terms.
Work through five practical steps
Each step should define the task, what to check, what to watch out for, and what completion looks like.
Select the evidence you will use to explain price.
From the materials confirmed in ANALYSIS and Sale Preparation, select only the evidence directly used to explain price.
Do not re-run the analysis.
Use only evidence that has already been confirmed.
Three to five core points for explaining price are fixed.
Separate the asking price from the target price.
Record the public price and the internal target separately, along with the rationale for each.
Do not use the two numbers as if they mean the same thing.
The number shown to the market and the internal target are clearly separated.
Set the internal minimum acceptable price.
Based on expected net proceeds and the purpose of the sale, set an internal floor below which the deal requires a fresh review.
Do not use the minimum acceptable price as external marketing copy.
An internal floor is set that requires a fresh decision during negotiation.
Prioritize non-price terms.
Separate terms that can be adjusted instead of price from terms that are difficult to concede.
Do not try to convert every term into a single price adjustment.
Non-price negotiation cards and hard limits are organized.
Set adjustment rules.
Decide in advance what must change before the price changes.
Do not cut price immediately based on only a few inquiries.
The rationale and review timing for price changes are recorded.
Use situations to follow the decision flow
The cases do not give a single right answer. They show what facts to observe and what to verify next.
Same analysis, different asking strategy
Educational example: assume ANALYSIS already indicates comparable transactions of KRW 2.
6–2.
8 billion, along with current cash flow, vacancy, and CAPEX.
The seller may use three different numbers with different roles: a market asking price of KRW 2.
85 billion, a target price of KRW 2.
8 billion, and an internal minimum acceptable price of KRW 2.
65 billion.
This example does not conclude that KRW 2.
8 billion is fair value.
It shows how the same analysis evidence can be managed separately as public price, target, and floor.
Record the internal rationale for each price and connect it to the net-proceeds calculation.
Adjusting terms instead of price
A buyer asks for a KRW 100 million price reduction, but the seller has room to move the closing date forward or adjust the scope of minor repairs.
If price is the only negotiation lever, the discussion may move straight to a discount.
Separating terms creates other options to compare.
Pricing strategy is a combination of price and terms, not one number.
Reconfirm which terms can change and which cannot.
A case where weak market response does not trigger an immediate price cut
Educational example: asking price KRW 2.
85 billion, target KRW 2.
8 billion, minimum acceptable KRW 2.
65 billion.
Over four weeks there were three inquiries and one site visit, with no new comparable transactions or CAPEX changes.
Low inquiry volume matters, but it does not necessarily mean the pricing evidence itself has changed.
First review exposure, target buyers, terms, and explanation materials.
Consider a price change when the market evidence itself has actually changed.
Record the review timing and reason for any change according to the adjustment rules.
Six questions you should be able to answer in this step
Not knowing an answer is not failure. It shows where further verification is needed.
Mixing the public figure with the internal target destabilizes the negotiation standard.
Record the two numbers separately and write one line of rationale for each.
The floor should be tied to the sale objective and net proceeds, not emotion.
Recheck the expected net-proceeds range and the capital plan after the sale.
Present only the core evidence instead of re-explaining the entire analysis.
From ANALYSIS and Sale Preparation, select only the evidence directly connected to price.
If price is the only negotiation lever, unnecessary discounts become more likely.
Separate closing date, handover, repairs, and document scope, then mark which can be conceded.
The internal floor is not an automatic rejection number; it is a trigger for a fresh review.
Recompare net proceeds, the sale objective, and the alternative capital plan.
This reduces impulsive price changes based on only a few inquiries.
Record the market-response period and the evidence changes that would trigger a review.
Pricing Strategy: three things to remember
More important than recalculating value is deciding in advance what price you will ask, why you can support it, and how far you will negotiate under what terms.
This page is a general educational checklist. Actual price, tax, rights, financing, and building-condition decisions depend on transaction terms and local rules and may require confirmation from relevant institutions or professionals.
Connect the pricing evidence and organized records to the buyer's actual questions.
→