One of the most common questions I hear from homeowners is:
What is the difference between market value and asking price?
The two are often confused, but they are not the same.
Market Value is the price that experienced real estate professionals, using local market knowledge, comparable sales, and current market conditions, determine a property is likely to sell for.
Asking Price is simply the price a seller chooses to list the property at. While every seller has the right to choose an asking price, it doesn’t necessarily reflect what the market is willing to pay.
During my 35 years in real estate, I’ve noticed a common pattern at listing appointments. Many sellers believe their home should be listed above market value, often for one of these reasons:
“If I price it higher, buyers will negotiate down anyway.”
My response: Not necessarily.
“If I start higher, I’ll have more room to negotiate.”
Again, not necessarily.
Here’s the reality.
Today’s buyers are well-informed. They have access to the same online information, comparable sales, and market data as everyone else. They know when a home is priced appropriately and when it isn’t.
One of the most effective pricing strategies is to list a property at its true market value.
Why?
Because two very positive things can happen:
- A properly priced home attracts more buyer interest and generates stronger demand.
- Increased demand can create competition among buyers, sometimes resulting in offers above the asking price.
On the other hand, an overpriced home often sits on the market longer. The longer a property remains unsold, the more buyers begin to wonder what’s wrong with it, even when nothing is.
Pricing a home correctly from the beginning is not about leaving money on the table. It’s about positioning the property to attract the greatest number of qualified buyers and allowing the market to determine its true value.
As real estate professionals, our role is to provide honest advice based on experience, market data, and proven strategies. Ultimately, the decision is always the seller’s, but the best outcomes usually occur when expectations and market realities are aligned.
OUTSTANDING LOCATION Turnkey/Furnished South Facing view overlooking sparkling lake and hole #1 of the Challenge Golf Course . 3 Beds 3 Baths in Palm Desert Asking $5500