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Offer price
Asking price – Difference to selling price, market value or actual property price
If during House sale when the asking price is mentioned, it must not be confused with the selling price, the market value, or the actual real estate price. The market value can, in fact, be higher or lower than the asking price. Nevertheless, this price is important because it greatly influences the success of the sale and makes the price expectations transparent.
Respond to price limits in the quoted price
When selling a house, it is important to first determine the market value of a property through a valuation. This price is based on the current market and is expected to be achieved. This, in turn, is an important factor that influences the asking price.
Therefore, it should not be set too high above the market value, as this would deter prospective buyers and they wouldn't get in touch at all.
If you sell your property at a price above market value, you may need to lower the price to find buyers. In this case, you are forced to accept a lower price than hoped for, which can cause your property to sell slowly.
How do I find the right marketing procedure?
So, if someone wants to sell their house or apartment using the traditional marketing method, they set the asking price above the market price. Five to ten percent is usual. When demand is strong, it might actually be possible to achieve this price or, during negotiations, to achieve a price above the market price.
In the bidding process, however, it makes sense to set the price below market value, because that is the only way potential buyers will be willing to submit a higher bid.
Respond to price limits in the quoted price
In addition to the marketing process, it is necessary to respond to so-called price thresholds. For example, if the price is EUR 401,000, it is better to offer it at EUR 399,000. This not only sounds more attractive, but is also relevant when searching on real estate portals and various search engines for properties under 400,000. If the price were above this limit, the search result would be displayed without the property.
From the asking price to the selling price
The asking price is the price at which the seller enters the market, i.e., their desired price that they want to achieve with the sale. As a seller, you want to ensure that the buyer is willing to purchase your property. However, since most buyers want to achieve a positive negotiation result—meaning they want to drive the price down—a markup of five to ten percent is usually advisable.
If the property is then sold, it is referred to as the selling price. The difference results from the buyers' willingness to pay and the demand.
Nevertheless, this price should not be set too high, as many potential buyers will not respond.
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