Property Valuation: Difference Between Asking Price and Market Price

What is the Asking Price?

The asking price is the figure the owner wishes to get from the sale of their home. It often stems from a mix of subjective factors, such as:

• the financial investment made in the past,

• memories and emotional ties to the property,

• personal expectations about the property's value.

These elements, while understandable from a human perspective, can lead to overestimating the home's real value compared to what the market is willing to pay.

What is the Market Price?

The market price, instead, represents the realistic and objective value of a property at a specific moment. It is calculated based on concrete parameters, including:

• position and attractiveness of the location,

• surface area and layout of the space,

• state of maintenance and finishes,

• prices of similar properties sold in the same area.

It is, therefore, the figure that buyers are actually willing to pay, and which allows a property to be competitive and appealing on the market.

Why the Asking Price and Market Price Almost Never Coincide

The gap between the asking price and the market price is one of the most common dynamics in the sales process. The main reasons include:

• overestimation by sellers, often linked to the desire not to devalue their asset,

• personal expectations and emotional ties, which tend to increase the perceived value,

• fluctuations in the real estate market, which affect purchasing power and buyer behavior.

This discrepancy makes it essential to rely on objective data and qualified consultants who can identify the right price from the very beginning.

Consequences of an Asking Price That Is Too High or Too Low

Starting with a price that is not in line with the market can have significant consequences:

• A price that is too high risks having the listing sit for months, reducing buyer interest and often leading to subsequent price drops.

• A price that is too low can lead to a quick sale, but at the expense of the property's real value, resulting in a significant financial loss for the owner.

In both cases, the result is a less effective sale than what could be achieved with a balanced and realistic valuation.

If your goal is to reduce the selling time, discover our practical tips on how to sell your house fast.

How to Get a Correct Property Valuation

To arrive at a competitive and fair price, it is essential to use professional estimation methods, such as:

• comparative market analysis, which compares the property with similar properties recently sold;

• the income approach, which is especially useful for income-producing properties;

• market data analysis, supported by digital tools and updated databases.

An expert consultant can also highlight the difference between the price perceived by the owner and the one actually recognized by the market, offering a clear and unbiased view, free from emotional conditioning.

Besides the valuation, there are other important elements not to be overlooked: read about the fundamental aspects to consider when selling a home.

The Role of Engel & Völkers in Property Valuation

To sell at the right price, it is crucial to choose the right partner: find out why it's a good idea to sell your home through a real estate agency.

Relying on Engel & Völkers means you can count on a precise, transparent, and result-oriented valuation. Our method is based on:

• in-depth knowledge of the local market, thanks to our extensive presence in the territory;

• international experience, which allows us to also reach foreign clients and maximize sales opportunities;

• advanced digital tools and personalized consulting, designed to enhance each property and position it at the right market price.

Determining the correct price is not just a technical step: it is the strategy that turns a listing into a successful sale. With Engel & Völkers, you have the certainty of navigating this process with the support of a reliable partner who puts expertise and a global vision at the service of your property.