LESLIE MONACO REAL ESTATE

Real Estate Term of the Day: Asking Price

ASKING PRICE – the list price that an owner would like to receive for their property (Barron’s Dictionary of Real Estate Terms)

Here are a few things to consider when trying to understand how the asking price should be properly arrived at:

• What are similar homes selling for in your neighborhood?
• How many have recently sold, expired or gone under contract?
• How does your home compare to the other active listings (aka: the “competition”)?
• What upgrades/improvements have been made on the home to increase the value?
• Can your asking price be justified reasonably by an appraiser using recent comparable sales in your neighborhood?
• What is the condition of the real estate market in your area?  Is a Buyer’s market? Seller’s market? or Balanced market?
• What is the average original sales price to final sales price in your market?
• What is the average amount of concessions given to buyers in your market?

Your asking price should not be:

• The amount of money you need to make to purchase your next home
• The amount you owe on your loan plus closing costs (such as marketing fees)

Although they above two factors might influence your decision to sell, these costs should not be a factor in your asking price if you have to sell.

If you would like to understand what a proper asking price would be for your home, contact me for a Free Home Evaluation