Final answer:
The final decision on a property's asking price is made by the seller. This is because the seller holds the legal right to set the amount they want to ask for their property, despite advice from a broker or appraiser.
Step-by-step explanation:
The final decision on a property's asking price should be made by the seller. While the appraised value can inform the seller of the property's value, it's the seller who ultimately determines the list price. A seller's broker can offer advice based on market conditions and comparable sales, and a seller's attorney might provide legal advice related to the sale. However, the actual decision on the asking price rests with the seller, as they have the legal right to determine how much to ask for their property.
In the scenarios provided as examples:
- Freda, who purchased a house for $150,000 cash, which is now valued at $250,000, has the right to decide her asking price if she decides to sell.
- Similarly, Ben who bought his house for $100,000, made a 20% down payment, and has seen an increase in the property's value to $160,000 while paying off $20,000 of his bank loan, can decide the asking price should he choose to sell.
In both cases, the decision of the asking price lies with the property owner. Even though external factors can influence this decision, it is not dictated by the broker, the appraiser, or the attorney.