In most real estate markets, there are four primary price points. However, there’s a fifth price point that isn’t present in many markets: ultra-luxury. Today I’m discussing all five price points, including what constitutes pricing an ultra-luxury home.
If we think of the price points as buckets, the first bucket would be the entry-level or starter price point. The second bucket would be the average price point in most markets. The average price point is different if you serve multiple markets. For example, the condo average price point you serve may be different from the average price point for the single-family home.
The third price point, or bucket, is high-end homes–which are 2x the average price point for your market. For example, if an average price point is $300,000 then a high-end home price point would be $600,000. The fourth price point, or bucket, is a luxury home. A luxury home is priced 3x the average price point for your market. With the same $300,000, a luxury home would be priced at $900,000.
The fifth price point, or bucket, is ultra luxury homes and this bucket doesn’t exist in a lot of markets. These are homes that are 10x the average sales price. So with that $300,000 average price point, an ultra luxury home in that market would be $3 million or above.
You can get all of these price points from a title company, your MLS, or your real estate board. It’s different in every market.
If you have any questions about today’s video, or if you’re considering a change in your career to another firm or team that specializes in luxury real estate, please call or email me. Don’t forget to jump on our “Luxury Fridays” on YouTube each Friday. Check it out by going to www.LuxuryFridays.com and clicking on the “Luxury Friday’s On YouTube” button.
Founder & CEO | Luxury Listing Specialist Designation (LUXE)
Click HERE to see where Michael is speaking next or where his next LUXE class will be.