Determining the price that you are planning to offer buyers is probably one of the most important decisions that you need to make, while selling your Florida home. The offer price should be such that it reflects the real value of your home. Overpricing your offer is not recommended because buyers are usually well informed and might have already visited other similar properties in the neighborhood. After a few weeks, your property listing is bound to lose appeal if it is overpriced. In comparison, making, an offer below the market price will not pose a problem. Properties that are listed below their market price receive multiple offers and this in turn affects the price.
Compare past property listings:
For determining the most appropriate offer price for your Florida home, you can start by looking at offer prices of other properties in the neighborhood that have been listed over the past six months. You need to select only those properties that are located in the same street or locality. You need to understand that even if there are similar properties in the locality, their market prices often vary depending on their proximity to main streets, freeways and railroads. You need to select only those properties that were more or less built during the same time as your own home.
Adjust the offer price:
In order to make the right offer, you need to compare property listing price offers with the actual sale prices to determine price reductions or increments. This way, you can make similar adjustments to your offer price. If your Florida home has extra amenities or upgrades, you can adjust your offer price accordingly. While studying past property listings, try to ascertain the reasons as to why some properties were sold at higher prices and why some were sold at lower prices. This will help you in making the required changes to your home, necessary for making a high offer price.
Adjust for existing demand-supply situation:
After going through past and present listings and determining an offer price, you need to make adjustments for the current demand-supply scenario existing in the local property market. For example, if your local property market is witnessing a downtrend, you can lower your initial offer price by three to four percent, to attract more buyers. If the market is booming, you can increase your offer price by 4 to 5 percent. In a balanced market, the offer price should be more or less the same as the offer price for similar properties in your neighborhood.
If you want to sell your Florida home at the most appropriate price, you need to first visit properties that are listed in your locality and note down the amenities and convenience their location offers. In this way, you will get a fair idea as to why some properties are priced higher than others. You can then perform the necessary renovations to your home to attract the right kind of buyers for the property. Selling your property will be much easier thereafter.
A share is a certificate of ownership in a company. The shares of BHP, for instance, are each a tiny piece of ownership of the company BHP. If a share in BHP is purchased, the purchaser now owns a little piece of BHP. BHP, as of writing, had over 1,750,000,000 shares on issue. Once a share is purchased in a company like BHP the share can be sold at the discretion of the owner of that share.
As a share represents a share in the ownership of a company, a shareholder has a right to a say in how that company is run. This is often a theoretical right as voting on running the company is conducted on a 'one share, one vote' basis. Obviously if a shareholder has one share of BHP that shareholder has only one vote out of a possible 1,750,000,000 votes. Owners of larger number of shares have more votes and therefore more of a say in the running of the company.
What is the price of a share?
A trader telephones her broker and says, "I am interested in shares in BHP, what is the price?"
The stockbroker replies "BHP is $9.50 bid and $9.53 offered"
This "9.50 bid and 9.53 offered" means that the highest price anyone is currently willing to pay for a share (or a number of shares) in BHP is $9.50, while the lowest price that anyone is currently willing to sell a share (or a number of shares) in BHP is at $9.53.
In market jargon the "Bid" is $9.50, while the "Offer" is $9.53". This "bid and offer" terminology makes sense; a buyer is bidding to buy the shares while a seller is offering to sell the shares. The distance between the bid and the offer in this example is currently 3 cents (i.e. 9.53 minus 9.50). This distance is referred to as the "bid/offer spread", or just the "spread".
Our trader, if she wants to buy some shares in BHP, now has a couple of choices available to her. She can buy BHP shares without any further ado by buying the shares on offer at $9.53. (Similarly if she already owned shares in BHP and wanted to sell them immediately she could sell to the buyer at $9.50). If our trader did want to buy and was happy to buy at $9.53 she would say to the broker, "I want to buy 500 shares (or whatever the amount is) at $9.53". This is an "at market" order, our trader may just as easily have said to the broker "I want to buy 500 shares of BHP at market" ? this means the broker is to buy the shares for the client at the first available offer (which, as we have seen, is $9.53).
Our trader may not be happy to buy at $9.53. She may wish to try to buy the shares a little lower. Let's imagine our trader says to the broker "I want to buy 500 shares of BHP at $9.50". What she has done is placed a bid with the broker at $9.50. As we have just seen, there is already a bid at $9.50 and our trader has now expressed an interest to buy at the same price as the current bid. The bids are automatically ranked by the SEATS system in order of whoever was first. Our trader, in joining the bid at $9.50 will be ranked behind the current bids; what that means is that the other buyers at $9.50 will have their orders "filled" before our trader is filled on her order. That is, our trader will buy her shares at $9.50 only after the other buyers have bought theirs. This would seem to be a very fair way of doing things, it seems one must queue for most good things!
Our trader, however, may not be interested in joining the queue. She can, of course, buy immediately at $9.53, but if she wants to try to buy a little lower without having to join the queue our trader can place her bid at $9.51. In doing so she now becomes the highest bid in the market, anyone else asking his or her broker "Where is the market in BHP?" will now hear in reply from the broker "BHP is bid at $9.51 and offered at $9.53".
In placing her bid at $9.51 our trader is now first in line to be "filled" on her buy order. Any other trader joining her on the bid at $9.51 will be ranked behind our trader now.
Both Kris Koonar & Les Freeman are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Kris Koonar has sinced written about articles on various topics from Site Promotion, Certified Public Accountants and Culture and Society. Are you interested in all around Florida including: Orlando, Tampa, Ft Lauderdale and Jacksonville.. Kris Koonar's top article generates over 550000 views. to your Favourites.
Les Freeman has sinced written about articles on various topics from Stock Exchange, Finances and Real Estate. Les Freeman has ten years working experience in stock industry, he providing professional advices to people on Online Trading, Share Stock and share Investment. In addition, he is a lecturer in Sydney University, teaching E-Business and Finance. More Info. Les Freeman's top article generates over 18100 views. to your Favourites.