ASKED

What is ASKED?

ASKED is a term used in real estate to denote the amount a property owner sets as the selling price for their property. This amount can vary widely from the property’s appraised value, market value, or assessed value. The asked price is often influenced by various factors, including the owner’s personal circumstances, the condition and unique features of the property, and the current state of the real estate market.

Examples

Example 1: Abel asks $75,000 for 20 acres of land, despite its appraised value being only $60,000. Abel may believe the land has features or future potential that justifies the higher price.
Example 2: A homeowner might ask $500,000 for their house because of sentimental reasons or because of the renovations they’ve made, even though the market value is only $450,000.
Example 3: During a seller’s market, where demand exceeds supply, a property owner might set a higher asking price, anticipating that buyers will compete and potentially even bid above the asking price.

Frequently Asked Questions

Q1: How is the ASKED price different from the appraised value?

The ASKED price is set by the property owner and can vary according to their discretion and motivations. The appraised value is determined by a licensed appraiser based on the property’s condition, location, and comparable sales.

Q2: Can the ASKED price be negotiated?

Yes, the ASKED price is often negotiable. Buyers can present offers below, at, or above the asked price, and negotiations can occur until both parties agree on a final sale price.

Q3: What influences a property owner’s ASKED price?

Factors influencing the ASKED price include the owner’s financial needs, property condition, location, market trends, and unique property features.

Q4: How does the ASKED price affect the selling process?

The ASKED price sets the initial benchmark for negotiations and can attract or deter potential buyers. Pricing too high might slow down the selling process, while pricing competitively can generate quick interest.

Q5: Can the ASKED price be different from the listed price?

Typically, the ASKED price and the listed price are the same. However, sometimes a property owner might informally suggest an ASKED price before formally listing the property.

Appraised Value: The estimated monetary value of a property as determined by a professional appraiser, considering factors like location, condition, and comparable property sales.
Market Value: The amount a property would sell for on the open market, determined by both buyer demand and comparable property prices.
Assessed Value: The value of a property as determined by a public tax assessor for the purpose of property taxation.
Listing Price: The price at which a property is publicly advertised for sale, often the same as the ASKED price.
Negotiated Price: The final sale price agreed upon by both the buyer and the seller after negotiations.

Online Resources

References

National Association of Realtors. (n.d.). Pricing Your Home to Sell.
Zillow. (n.d.). Seller’s Guide: Pricing Tools and Resource.

Suggested Books for Further Studies

“Real Estate Investing for Dummies” by Eric Tyson and Robert S. Griswold
“The Millionaire Real Estate Investor” by Gary Keller
“The Book on Rental Property Investing” by Brandon Turner

Real Estate Basics: ASKED Fundamentals Quiz

### Does the ASKED price always reflect the appraised value of a property? - [ ] Yes, the ASKED price is always the same as the appraised value. - [x] No, the ASKED price can be different from the appraised value. - [ ] Yes, unless the owner sets it higher intentionally. - [ ] Only if the property has been appraised within the last year. > **Explanation:** The ASKED price is set by the property owner and may be higher or lower than the appraised value based on various factors like personal circumstances and market trends. ### Who sets the ASKED price for a property? - [x] The property owner - [ ] The appraiser - [ ] The realtor - [ ] The tax assessor > **Explanation:** The ASKED price is set by the property owner, who considers various factors including their financial goals and market conditions while setting it. ### Is the ASKED price typically negotiable? - [x] Yes, the ASKED price is often negotiable. - [ ] No, the ASKED price is fixed. - [ ] Only in a buyer’s market. - [ ] Only for commercial real estate. > **Explanation:** The ASKED price is often the starting point for negotiations between the buyer and the seller. ### How can overpricing the ASKED price affect the selling process? - [ ] It ensures a quicker sale. - [x] It can slow down the selling process. - [ ] It usually generates multiple offers. - [ ] It has no impact on the selling process. > **Explanation:** Overpricing can deter potential buyers and prolong the time the property stays on the market. ### What factors might influence a property owner's ASKED price? - [x] personal financial needs - [x] property condition - [x] current market trends - [x] unique property features > **Explanation:** All these factors influence a property owner's ASKED price, as they directly impact perceived value and selling strategy. ### How does the market value differ from the ASKED price? - [x] Market value reflects what buyers are willing to pay on the open market. - [ ] ASKED price is set by the bank. - [ ] Market value is always lower than the ASKED price. - [ ] They are always the same. > **Explanation:** The market value is what buyers are willing to pay, while the ASKED price is set by the seller and can diverge from market expectations. ### Can the ASKED price be the same as the listed price? - [x] Yes, the ASKED price is typically the listed price. - [ ] No, they are always different. - [ ] Only during a seller’s market. - [ ] Only if the property has multiple offers. > **Explanation:** The ASKED price and the listed price are often the same, representing what the seller publicly advertises for the property. ### Why might a property owner ask for a price higher than the appraised value? - [x] Sentimental value or unique property features - [ ] Appraiser's mistake - [ ] Market slump - [ ] Recent renovations > **Explanation:** Property owners might ask for a higher price due to sentimental value, unique features, or renovations that they believe add extra worth. ### What term is used to describe the final sale price after ASKED price negotiations? - [ ] Appraised price - [ ] Listed price - [x] Negotiated price - [ ] Market price > **Explanation:** The final price agreed upon after negotiations is referred to as the negotiated price. ### Can ASKED price provide an indication of the seller's expectations? - [x] Yes, it reflects what the seller hopes to achieve from the sale. - [ ] No, it has no bearing on expectations. - [ ] Only if it's aligned with market value. - [ ] Only for properties listed for over a year. > **Explanation:** The ASKED price typically provides an indication of what the seller expects to receive from the sale.