Where Your Home Fits in the Market
We developed this pricing triangle to represent all of the potential buyers in the market for a given home. Once you understand how it works, it’s easier to understand pricing and how it can affect the traffic results you generate among buyers.
Basically, the higher your asking price on the triangle, the lower the percentage of buyers who will be interested in purchasing it.
- As the asking price increases toward the peak of the triangle, the number of potential buyers who are willing to pay a premium price for the home declines until the buying public perceives that the price is so high that no prospects are attracted at all.
- As the asking price declines toward the base of the triangle, the home is perceived to be a “bargain,” and the number of potential buyers increases.
- Ideally, you should price your home in the range of actual fair market value.
- Your agent can help you determine this range with a Comparative Market Analysis. Setting a fair asking price helps you obtain the maximum selling price for your home.
