Understanding the Purpose of the Asking Price

The asking price is the most critical price. It will determine how many prospective buyers will view your property and whether they will make an offer or not. The asking price is what attracts or repels buyers and agents. What you want for your property or what you feel you need for your property has nothing to do with the final selling price of your property. The market alone dictate the value of your property, not your enthusiasm, your desires, your wants and not even your needs.

The buyer doesn't care about any of this--especially not today's sophisticated buyer. Buyers nowadays go online and look at any where between 40 to 100 homes online. They know the market value very well. Since it is the market that usually determines the selling price, all you control is the asking price. Again, it is the asking price that determines how much or how little activity your property will receive. Use an asking price that will ultimately get you the highest possible selling price. It stands to reason that the greater the activity, the more likelihood there is that offers will be presented. The closer your asking price is to the true market value, the greater chance you have of achieving the highest possible price.

For example: Let's say the true market value of your property is $250,000. If you were to ask $300,000 for it, two things will happen. 1. It won't get shown much 2. You will not get an offer. Also agents may show your house to show other homes that are a better value and use your home in order to sell other houses. You don't want to help others sell, do you?

Now it you price that property at $250,000 2 things will happen. 1. You will get a lot of showings 2. You may get mulitiple offers. When you get multiple offers, the seller is extracted from the negotiation and the buyers then negotiate against each other. Many times this raises the price and the seller will walk away with the highest price and the best buyer. What result would you like?