Certified Pennsylvania Evaluator Practice Exam

What is the price for which something is offered for sale, usually representing the upper limit of value?

1. Selling Price

2. Market Value

3. Asking Price

4. Appraised Value

The correct answer is: Asking Price

The asking price refers to the specific price at which a seller is willing to sell an item or property. It is commonly seen in real estate and other sales transactions where the seller sets a price that reflects their perceived value for the item being sold. This price often serves as a starting point for negotiations, representing the seller's upper limit of value for the asset. In contrast, other terms have distinct meanings. The selling price is the actual price at which an item ultimately sells, which may be lower than the asking price following negotiations. Market value represents the estimated price at which an asset would trade in a competitive auction setting, influenced by factors such as demand and overall market conditions. Appraised value is an opinion of value provided by a certified appraiser, often used for lending or tax purposes, that might not align with the asking or market value. Understanding the nuances between these terms is crucial in contexts such as real estate, where accurately determining the asking price can significantly impact the selling process.