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
property having an easement right through another adjoining property. The property through which the easement passes is considered to have the servient tenement. ...
Cubic unit of measure for a board one-foot long, one-foot wide and one inch thick, or 144 cubic inches. These measurements are not actual, since they are stated prior to finishing and ...
Device that places the ownership of real property with one or more trustees for security until the loan is paid by the debtor. It is used in place of a conventional mortgage contract in ...
Potential customer or client in which there is a realistic chance of making the sale for the product or service. An example is a prospective purchaser of real estate that the real estate ...
Under law, a warranty in effect even if not expressly stated. It provides that real property sold is warranted to be appropriate for sale and is in proper condition even if not stated, ...
Written document by an official granting agency and signed by an empowered official certifying that some specific act including the fulfillment of certain requirements has occurred on a ...
Judicially determined minimum selling price for auctioned property. For example, a judge rules that a foreclosed home may be sold for less than $200,000, ...
Rental due on the leased property is formulated as a percentage of sales volume. There is typically a minimum rental specified. An example is a retail store that pays rental based on its ...
Aerial photos are photographs taken by cameras mounted in aircraft or satellites. Aerial photos are more commonly used in the industrial Real Estate Market to get a better feel of a ...
Have a question or comment?
We're here to help.