Selling price or asking price? What is the difference?
3 min.
When owners decide to sell their property, one of the first and most important questions is the right price. Owners often start by researching on the Internet to find out about the current situation on the local real estate market. In doing so, they stumble across terms such as: Market price, asking price and sale price. But what is actually the difference?
The property value and the price that a prospective buyer is willing to pay are not always identical and also depend on numerous factors. In order to successfully market a property, the market value must first be determined and an asking price set. The actual sales price achieved may end up being higher or lower than this asking price. In this respect, it makes little sense, for example, to derive expectations for the sales proceeds of your own property from a comparison with the asking prices of similar properties.
The market price
The market price, market value or market value refers to the average price paid for a property in a specific location and with specific characteristics at a specific point in time. Factors that influence the market price are, on the one hand, the location, condition and features of the property and, on the other, the current supply/demand ratio on the real estate market. The market price corresponds to the result of the valuation by the real estate agent using professional valuation methods and ideally forms the basis for the asking price.
The offer price
The amount for which you offer your property to a prospective buyer is also called the asking price. In many cases, it is advantageous to use the professionally determined market price directly as the asking price. Then you do not have to justify your pricing later. However, some sellers want to allow a margin for possible discounts without having to go below the asking price and therefore set the asking price slightly higher. This strategy is risky, however, as setting the asking price too high will put off potential buyers and extend the time it takes to market the property.
The sales price
If you have decided on an asking price, this does not mean that you will end up getting this amount for your property. Interested parties often try to negotiate discounts for themselves. Sellers who are not supported by an experienced professional estate agent during price negotiations may then lose a few percent of the asking price and achieve a lower sale price. On the other hand, a higher sales price can also be achieved if the marketing is handled professionally and the property is popular with prospective buyers due to its location and features. In very special cases, there may even be a bidding process in which several potential buyers are determined to win the property for themselves. With a real estate professional at your side, you will find the right pricing strategy for the sale of your property and thus achieve an optimal sales price. After all, this is what ultimately matters to you as a property seller.
Are you thinking of selling your property? Get in touch with us! We will be happy to support you.
You need further information:
https://www.sueddeutsche.de/geld/verkaufs-knigge-angebotspreis-achterbahnfahrt-vermeiden-1.555338
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.
Photo: © Nattanan Kanchanaprat/Pixabay.com
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