Monday, August 20, 2012

What is Selling Price in Real Estate Investing

The selling price or the asking price is simply the price at which a property is offered for sale in the open market. It is based on the Fair Market Value (FMV) of the property.

Generally, the selling price is set slightly higher than the market value usually 1 to 3 percent above the market value. This is to give room for negotiations with the buyer. Be careful though with overpricing you home because this could mean fewer showings and less offers from potential buyers.

In selling your house, you'll want to establish your priority list: Are you more concerned with selling quickly or getting the most money possible? You'll also want to contemplate whether you think the agent's suggested price is reasonable and whether you'd pay that amount if you were a buyer.

Your agent, as well as friends, relatives, and neighbors, will help you point out your house's advantages and disadvantages that you may not have thought about because you're too close to the house and not as objective as others.

A third party will help you think of your house as a commodity—something with positive and negative selling points. At that point you can decide on a price that you deem competitive and in line what other houses in your area have sold for.


Source :

http://www.realtor.com

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