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ASKING PRICE – DIFFERENCE FROM SELLING PRICE, MARKET VALUE OR ACTUAL PROPERTY PRICE
When people talk about the asking price in a house sale, it must not be confused with the selling price, the market value or the actual property price. The market value can be above or below the asking price. Nevertheless, this price is important, as it strongly influences the success of the sale and makes price expectations transparent.
RESPONDING TO PRICE THRESHOLDS WITH THE ASKING PRICE
When selling a house, it is important first to establish the market value of the property by means of a valuation. This depends on the current market and is the price that can probably be achieved. It is in turn the basis for the asking price. It should therefore not be set too far above the market value, as this would deter prospective buyers, who would not get in touch at all.
The property could then also become hard to sell. And if the seller is later forced to lower the price, this puts them in an unfavourable negotiating position.
HOW DO I CHOOSE THE RIGHT MARKETING PROCEDURE?
Anyone who wants to sell their house or apartment through the classic marketing procedure sets the asking price above the market price. Five to ten per cent is usual. If demand is strong, it may be possible actually to achieve this price or to achieve a price above the market price in negotiations.
In the bidding process, however, it makes sense to set this price below the market value so that prospective buyers can be encouraged to make higher bids.
RESPONDING TO PRICE THRESHOLDS WITH THE ASKING PRICE
In addition to the marketing procedure, so-called price thresholds must be taken into account. If the price is, for example, €401,000, it is better to offer it at €399,000. This not only sounds cheaper but also matters in Google searches or on real estate portals when people search for properties under €400,000. If the price is above this threshold, the search results would be shown without the property.
FROM ASKING PRICE TO SELLING PRICE
The asking price is the price with which the seller goes to market – their desired price that they want to achieve with the sale. Since every buyer wants to achieve a positive negotiating result, i.e. to push the price down, a mark-up of five to ten per cent makes sense.
When the property is then sold, this is called the selling price. The difference also results from the prospects' willingness to pay and from demand.
Nevertheless, this price should not be set too high, as many prospective buyers will not respond.