No matter where you live, there are four price points in every market.
When I say price points, I don’t mean rental pricing—I mean the average closing price points of all home sales. These price points can vary within your particular market, so you need to know what they are.
The first and lowest price point contains the entry-level homes.
The second price point, or the one just above entry-level, contains the average price point homes.
The third price point features the high-end homes. We define high-end homes as those that are worth twice as much as the average sale price.
The fourth and final price point is for the luxury homes. We define luxury homes as those that are worth three times the average sale price. It’s important to remember that luxury homes, like entry-level homes, are defined differently for each market.
If you’re an agent and you specialize in entry-level and average price point homes, I suggest you diversify your real estate portfolio to include more high-end and luxury homes. This is what we teach in our Luxury Listing Specialist Certification Program. Our goal is to get you to increase the average sale price of the homes you represent and make more money by working smarter, not harder. We want you to increase your income level by 30% by adding more high-end and luxury homes.
If you have any more questions about knowing your price points or want to learn more about diversifying your portfolio, don’t hesitate to call or email me anytime.