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
The Exclusive Agency Listing is regularly confused with the Exclusive Right to Sell Listing, but they are not the same. True: on both Listings, only 1 Broker or Agent has the right to sell ...
Generally, a legal notice implies a method of official notification to an individual, organization, company, or the public that a particular event is about to occur. We can call a ...
Trying to resolve a problem between two individuals up with some compromise or common ground. It occurs more often during times of poor economic conditions. An example is a creditor ...
(1) Paved roadway constructed above lowlands such as a swamp. (2) Roadway in ancient Egypt connecting the valley temple with a pyramid. ...
The appraisal approach is used to estimate the value of an asset, based on various factors to reach the closest educated guess of the asset. While an appraisal approach does consider the ...
A municipal or county local government board that resolves zoning disputes. ...
Government owned lands, for conservation purposes or for specific uses such as dams and hydropower. Public lands are owned by federal, state, and local governments. Many public lands are ...
Type of ownership by husband and wife, recognized in 27 states, in which the rights of the deceased spouse pass to the survivor. It is the same as joint tenancy, except that one spouse ...
The definition of trade-in in real estate refers to a swap of houses. The trade-in program gives a seller of a property the chance to find an ideal replacement home for their family while ...
Have a question or comment?
We're here to help.