Ask Price
Definition of "Ask price"
Ask Price is the initial listed price for a piece of real estate.
It’s important to understand that, in the real estate world, there’s no such thing as a fixed price when buying or selling a property. Fixed price is a concept you can only apply when the product in question has scale, so you might have a fixed price on rental properties of a building, however, when buying or selling a property, the homeowner does not set a price so an interested home buyer can acquire it by merely paying that value.
It is more of a bargaining routine, where the home seller sets a price - the so-called ask price - he/she believes corresponds to the worth of the property. Then, it’s up to the interested home buyer to make his/her own assessment of worth - the so-called offer price - and make an offer to the home seller. If both agree to it - the so-called Fair Market Value - the house is sold.
Although the asking price is thoroughly studied by the homeowner and the professionals surrounding him/her - especially the agents and the Appraiser - the most common scenario is to have the home buyer offering a lower amount of money than the one the home seller set as the property’s asking price. When that happens, the home seller usually makes a counteroffer and both of them go back and forth until they can agree on a fair market value for the property.
There are sometimes when you’re in a Seller’s Market or the house is so unique, that a home buyer might make an offer higher than the ask price in order to secure the house. It’s rare, but it happens.
Real Estate Advice:
Take a look at our Real Estate FAQs. Maybe the answer to those frequently asked questions will help you understand the big picture better.
And check The OFFICIAL Real Estate Agent Directory® to find an agent to help you with whatever you can't find on our website (if that's possible!)
Popular Real Estate Terms
Unsecured long-term debt. There is no collateral or lien on the property. A debenture can only be issued by a financially sound borrower with an excellent credit rating because no ...
Claude in a contract, title, or mortgage that is subject to being annulled, repealed, or revoked upon the satisfaction of a claim or completion of a future event. ...
Changing property ownership. An example is the sale of a home to another. ...
(1) Paved roadway constructed above lowlands such as a swamp. (2) Roadway in ancient Egypt connecting the valley temple with a pyramid. ...
Something that is inferred, but not explicitly stated. The inference may be deducted from the relevant information. ...
Buyer who is acting in good faith, is not aware of any outstanding claims or rights of others to the property, and has given valuable consideration as part of the business transaction. ...
Intentionally misstated or undisclosed facts, statements or representations. Misrepresentation is a form of fraud which could lead to cancellation of a contract or other liability. For ...
Legal status conferred by certain states on a homeowner's principal residence. In certain states, homestead status may provide protection against creditor claims or forced land sales ...
Thinking about selling your own home without an agent? You can. For Sale By Owner or FSBO is how it’s called in the real estate world. It's when a homeowner decides to sell his/her ...
Have a question or comment?
We're here to help.