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
A horizontal beam connecting together two rafters supporting the roof. The collar beam is located at the point substantially higher than the wall plate connecting the rafters. The high ...
Also called profit and loss statement. A financial statement depicting a business entity's operating performance and reports the components of net income, including sales of real estate, ...
Mortgage loan not insured or guaranteed by a governmental agency such as the Federal Home Administration or the Veterans Administration. This type of loan is repayable in fixed monthly ...
That which remains. As applied to real estate, it is the profit derived from rentals after subtracting all operating costs from the gross rental revenue. ...
Tax term describing current and necessary business expenses. Ordinary and necessary business expenses do not include long-term capital losses. For example, the XYZ stationary store deducts ...
Failure, without sufficient reason, for one or both parties to perform the terms of a real estate contract. Breach requires unequivocal, decisive, and absolute refusal to carry out the ...
State tax based on the value of property received through inheritance. The tax is paid by the recipient not the estate. Tax paid to the government or state upon the death of the taxpayer ...
Home appraisals are required for many situations in the real estate industry. The most common instances in which any homeowner might be required to do an appraisal are selling your home or ...
Through real estate properties, many individuals of varying degrees of expertise find ways to make money. The real estate industry allows these practices as real estate properties are ...
Have a question or comment?
We're here to help.