Home Real Estate Hot real estate markets can create gaps between a home’s list and...

Hot real estate markets can create gaps between a home’s list and sale price

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What’s the difference between listing price and sale price, and why are they often so different?

Listing price, also known as asking price, refers to how much a seller has listed a property for, and sale price refers to the amount it actually sells for.

There is a lot of media attention these days about homes being sold well above their listing or asking price. In a sellers’ market, where market conditions favour sellers, it’s not uncommon for multiple buyers to make offers, with the final sale price sometimes far exceeding the asking price.

It is important to note that a seller has the right to set the asking price at whatever amount they believe is the best strategy to sell their home. RECO does not regulate the decisions of sellers or buyers.

At one time, a common seller’s strategy was to set the asking price close to or even slightly above the best estimate of what the home was worth, and the final selling price would end up being very close to…

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