Asking Price Versus Probable Selling Price

The asking price represents what the owner hopes to receive. The probable selling price represents what the market is currently likely to accept. These numbers are often different.

A property may be advertised above market value because:

• the owner expects room for negotiation;
• the asking price is based on emotional attachment;
• the owner is comparing the property with unsuitable listings;
• the property has remained on the market while conditions changed;
• competing properties have reduced their prices.

Agents should therefore avoid presenting current asking prices as confirmed market values. A credible valuation should consider the property’s characteristics, competition, days on market and visible price reductions.

Where verified transaction data is unavailable, the agent should clearly state that listing prices are being used as market evidence rather than completed sale prices.