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 leasehold estate that can be determined by the lesser or lessee at any time. ...
Association of the owners of all condominium units in a building that is concerned with managing day-to-day matters in the building complex, including the surrounding and enforcing ...
Something that cannot be taken, returned, or revoked. An example is an irrevocable trust formed by a person giving her real estate to a trust administrator. ...
English architecture. This style has two levels with the second level typically overlaying the first story. The roof is high and the chimney is sculptured. ...
Holder of a real estate license who solicits a prospective buyer of property and receives a commission for his efforts. ...
When an Appraisal is done, its ultimate goal is to define a Market Value for that property. So, in short, market value is the value of a real estate property in a free competitive ...
The accrued interest definition can be explained through the interest collected by a set date on financial obligations that were not paid out. As interest can be of two types, so does ...
The bonus depreciation definition refers to a tax incentive that allows a business to accelerate the depreciation deduction in the year when the asset is purchased and placed into use. The ...
Person leaving from work to spend time in leisure activities. pay in full the balance on a debt either at or before the maturity date. Penalties may be assessed on prepaying a mortgage. ...
Have a question or comment?
We're here to help.