A BID is the amount someone is willing to pay for a property. It is a proposal by a potential buyer in response to a seller's ASKING PRICE. It sets the stage for negotiating the purchase agreement.
Effective demand refers to the actual demand for a product or service that is backed by the ability and intention of consumers to pay for it at the prevailing price.
The fundamental economic concept of Supply and Demand dictates that market prices are determined at an equilibrium point where the quantity supplied matches the quantity demanded. In real estate, this principle is complicated by the slow adjustment of supply due to lengthy planning and development periods.
