Ask Price

The Ask Price is the price at which the owner of a property is willing to sell. Often, this is not the same as the price a buyer is willing to pay, referred to as the bid. A seller can accept, reject, or counter a buyer’s offer with a different Asking Price. A seller might have a specific price in mind below which they are not willing to accept, however, they also might set their Ask Price higher than that amount assuming that the buyer will want to negotiate. If there are few properties on the market, the Ask Price and the buyer’s bid price can be close or the same in some cases. In a buyer’s market, the amount of money the buyer offers may exceed the seller’s asking price. Prices in such markets can make it difficult for an investor who is buying to obtain a satisfactory return on their money, however, it is often a good time to sell. Conversely, if there are more properties for sale than qualified buyers, the bid prices can be appreciably below the ask price. Realtors call this a buyer’s market. This type of market is better for investors who are buying, whether they rent out the property or flip it, they can often achieve a higher rate of return on their investment in this type of market.