In the stock market, stock prices are quoted by a bid & ask. This means you generally buy stock at the Ask and sell at the Bid price. The difference in price is called the spread. So let's say Google symbol (GOOG) is quoted 435 bid by 436 ask. What does this really mean? That means someone is willing to buy Google stock for 435 and there is someone willing to sell Google at 436.
So how does this relate to real estate? As a home seller you might Ask/List your home for $179,000, but in the end you might receive a Bid/Offer for only $164,900. Remember you can list your home for any price, but until one or both parties agree to either accept less or pay more a home will stay on the market. In the past, there were more home buyers bidding up home prices. Today, home buyers are bidding down home prices. In order to sell a home in a timely manner, you need to narrow the spread between the Bid (Sale Price) and Ask (List Price), meaning price your home at the market or slightly below.
Now in the stock market, millions of Google shares are traded daily, meaning it's a very liquid market. In the Omaha real estate market, somewhere between 8,000 and 12,000 homes are sold each year, so homes are still selling. I pulled some Sold data from the Omaha MLS, year-to-date as of 9/24/08 there has been 6,774 residential homes sold, compared to 8,176 for the same period last year or down 17.1%. Understanding the market and the bid/ask is key to selling your home in a timely manner.
If you are interested learning more about my marketing services, I would enjoy meeting you in person.
Thanks for reading my blog.
Steve
STEVE LAUVER
PAPILLION Realtor
DEEB Realty
http://www.omaharealtypro.com/