By Kathy Henne

Contributing columnist

You’ve heard the terms “asking price” and “selling price.” Who determines those prices, and how are they established? What’s the difference between the two?

When selling your home, make certain that the “asking” and the “selling” price will be close to the same. The asking price, established by the seller, is ideally based solely on historical sales data. The seller’s agent can provide actual selling prices on similar homes that have sold recently, and suggest a likely sales price range.

Asking prices based on hearsay, appreciation expectations, or other nearby homes “asking prices” are not likely to attract a buyer, and may lead to a lengthily time on the market. An asking price “above the market” may encourages low offers, or may simply serve as the reason buyers select another home to purchase.

What, then, is the “selling” price? It is that price finally agreed to by both the buyers and sellers as cited in the sales contract. Sellers who carefully select an asking price based on the current market are often rewarded with a purchase offer close to the asking price. The reason? Buyers are also careful shoppers. When they find a home with a “fair” asking price, they are more likely to make a “fair” offer.

Is there a lesson here for sellers? Certainly. Set an asking price that is likely to be very close to the selling price!

Contact the Kathy Henne Team Re/MAX by calling 937-778-3961